Engineering Board Exam Reviewer · Rate of Return Analysis · easy
An investment of P50,000 grows to P66,550 after 3 years with a single payment at the end. Find the annual rate of return (compounded annually).
- 10%
- 33.1%
- 11.03%
- 9%
Answer
A. 10%
Solution
66,550=50,000(1+i)3 (1+i)3=1.331 1+i=1.10, so i=10%.
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