Annually compounded rate of return on investment


Thirty-five years ago, you invested $1,000 in a retirement fund. Today the fund is worth $130,000. What has been your annually compounded rate of return on this investment?

a. 13.7%

b. 11.2%

c. 12.8%

d. 14.9%

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Finance Basics: Annually compounded rate of return on investment
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