Question

Hi guys! I'm really bad at this type of stuff so I asked my friends for help. One got C while the other got B. Can anyone figure this out and tell me how??

Answer 1

V0 = 5750 is the initial investment
v2 = 6080 is the value after 2 years

Plug those values into the given formula and then use a calculator
r = sqrt(v2/v0) - 1
r = sqrt(6080/5750) - 1
r = sqrt(1.05739130434782) - 1
r = 1.02829533906743 - 1
r = 0.02829533906743
r = 0.028
r = 2.8%

Final Answer: Choice C) About 2.8%