Question

Henry invested $7,500 exactly 2 years ago. In exactly 4 years from now, he expects his...

Henry invested $7,500 exactly 2 years ago. In exactly 4 years from now, he expects his investment to be worth $13,900. If he is correct, what would his compounded average annual growth rate be?

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Answer #1

Total period of investment is 6 years.

Using calculator:

Calculator
Inputs:
PV               (7,500.000)
PMT                               -  
FV                13,900.00
N                                6
Output:
I/Y = IRR 10.830406%

Answer is:

10.830406%

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