1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
melomori [17]
3 years ago
12

An investor originally paid $22,000 for a vacant lot twelve years ago. If the investor is able to sell the lot today for $62,000

, what would his annual rate of return be on this investment (rounded to the nearest percent)?
a.7%
b.9%
c.5%
d.11%
Business
1 answer:
MArishka [77]3 years ago
4 0

Answer:

b.9%

Explanation:

Formula for annual rate of return formula is as follows;

Annual rate of return = [ (New value/ Initial value)^(1/t) ] -1

t = the total holding period of investment = 12 years

Old value = 22,000

New value = 62,000

Next, plug in the numbers to the formula;

Annual rate of return; r = [ (62,000/22,000) ^(1/12) ] -1

r = [2.8182 ^(1/12)] - 1

r = 1.0902 -1

r = 0.0902 or 9%

You might be interested in
How would a business person be most likely to use a seed capital
Anarel [89]
A business person would most likely use seed capital to start a new business or use it to contribute financially to the business. 
7 0
3 years ago
You should try to get the lowest interest rate possible in which situation
Bumek [7]

Answer:

B. you are borrowing money from another person

Explanation:

rest is you giving money to others which if you could youd want higher interest rates for

3 0
3 years ago
Has your idea of yourself five years from now changed in any way since beginning this course? If so, describe the reasons. If no
sesenic [268]

Answer:

This is a personal question man

Explanation:

Im sorry, but I can't answer personal questions

Sorry

6 0
3 years ago
The type of unemployment associated with recessions is called:
kherson [118]

Answer:

cyclical unemployment

5 0
3 years ago
111111111111111111111111111111111111111111111111111111111111111111111111111111111
podryga [215]

Answer:

Hiiiiiiiiiiiiiiiiiiiiiiii 1111122212222222 if you needed help I would help

7 0
3 years ago
Other questions:
  • At Bargain Electronics, it costs $30 per unit ($20 variable and $10 fixed) to make an MP3 player at full capacity that normally
    7·1 answer
  • You are a financial manager in a public corporation. One of your engineers says that they can increase the profit margin on your
    15·1 answer
  • Identifying cash flows (LO 1) Mighty Vita produces a wide range of herbal supplements sold nationwide through independent distri
    13·1 answer
  • When producers receive a subsidy, sellers receive a:
    14·1 answer
  • Cung leads the design team at Rapidware, a software firm that deigns custom software to meet its clients' needs. He needs to hir
    6·1 answer
  • Based on a predicted level of production and sales of 12,000 units, a company anticipates reporting operating income of $26,000
    12·1 answer
  • The Weston Corporation is analyzing projects A, B, and C as possible investment opportunities. Each of these projects has a usef
    11·1 answer
  • In order for your savings and investments to truly increase in value, what must they do?​ select all that apply
    12·1 answer
  • Consider a hypothetical business problem of increased number of incidents and service requests raised by the users that was affe
    13·1 answer
  • A question that is used as the focus of a PBL project that communicates the challenge you must solve is called __________.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!