Question

You’re trying to choose between two different investments, both of which have up-front costs of $73,000....

You’re trying to choose between two different investments, both of which have up-front costs of $73,000. Investment G returns $133,000 in seven years. Investment H returns $193,000 in 11 years.

Calculate the annual return for Investments G and H. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Annual return
Investment G %
Investment H %

Homework Answers

Answer #1
Investment G 8.95%
Investment H 9.42%

where, i = Annual Return Rate

n = Number of years

Investment G

Invested Amount = 73,000

Future Value = 133,000

Interest Rate = 8.95%

Investment H

Invested Amount = 73,000

Future Value = 193,000

Interest Rate = 9.42%

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