Question

What annual rate of return is earned on a $5,000 investment when it grows to $9,500 in four and in six years? How do you solve this by selecting the insert financial formula option in excel?

Answer 1

Here we have the future value of investment and present value of investment
with time period, just calculate rate of return.
PV	5000	Used with - sign
FV	9500
NPER	4
Rate	17.41%
	=RATE(4,,-5000,9500)
So if 4 years is time horizon, 17.41% rate is required
PV	5000	Used with - sign
FV	9500
NPER	6
Rate	11.29%
	=RATE(6,,-5000,9500)
So if 6 years is time horizon, 11.29% rate is required