Answer:
You get a return rate of 162.06%
Explanation:
You start off with 1 mil in profit, but you must then add the inflation rate. It says inflation increases by 3% each year, so you cannot just take 15% of it but rather take away 3% the first year, increase it to 6% the next year, 9% the third year, 12% the fourth year, and 15% the last year.
for example, 1,000,000 * .97 = 970,000
then take 970,000 and multiply by .94 to get 911,800.
Then, continue until you get to .85 to get:
620,644.024. Because you want to find how much you made, you put 1,620,644.024 and divide by the original amount 1,000,000 to get approximately 162.06%.
