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SHOW ALL WORK Ten years ago, Bruce invested $1,250. Today, the investment is worth $3,550. If...

SHOW ALL WORK

Ten years ago, Bruce invested $1,250. Today, the investment is worth $3,550. If interest is compounded annually, what annual rate of return did Bruce earn on his investment?

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Answer #1
Calculator
Inputs:
PV          (1,250.00)
PMT                        -  
FV                  3,550
N                       10
Output:
I/Y = IRR= 11.00%

Else = 3,550 future value/ 1,250 present value = 2.84

Rate of interest that results in future value factor of 2.84 in 10 years from Future value of $1 table is 11%

Answer is 11%

please rate.

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