# Finance

posted by .

Your friend claims that he invested \$5,000 seven years ago and that this investment is worth \$38,700 today. For this to be true, what annual rate of return did he have to earn? Assume the interest compounds annually.

• Finance -

5000 * (1+x)^7 = 38700

Solve for x

• Finance -

x = 33.96

## Similar Questions

1. ### continuous compounding?

\$50,000 that was invested in 1970 was worth \$134,100 in 1980. What annual interest rate did this investment earn in that 10 year period?
2. ### Finance

. (TCO 3) Mark deposited \$1,000 today, in an account that pays eight percent interest, compounded semi-annually. Which one of the following statements is correct concerning this investment?
3. ### fnite math

Juan invested \$24,000 in a mutual fund 5 years ago. Today his investment is worth \$34,616. Find the effective annual rate of return on his investment over the 5-year period.
4. ### Maths

Your grandmother opened an investment account of \$1,000(initial deposit) 15 years ago. Today it's worth \$39,533.32 What is average annual rate of return that she earned?
5. ### Kennedy king finance

8. You invested \$2,000 in the stock market one year ago. Today, the investment is valued at \$9,500. What return did you earn?
6. ### Kennedy king finance

8. You invested \$2,000 in the stock market one year ago. Today, the investment is valued at \$9,500. What return did you earn?
7. ### Finite Math

Juan invested \$24,000 in a mutual fund 5 years ago. Today his investment is worth \$34,616. Find the effective annual rate of return on his investment over the 5-year period.
8. ### Finite Math

Juan invested \$24,000 in a mutual fund 5 years ago. Today his investment is worth \$34,616. Find the effective annual rate of return on his investment over the 5-year period.
9. ### Maths

Martha invested \$50,000 in a boutique 4 yr ago. Her investment is worth \$100,000 today. What is the effective rate (annual effective yield) of her investment?
10. ### Finance

You purchase a piece of property for \$30,000 nine years ago and sold it today for \$83,190. What was your annual rate of return on your investment?

More Similar Questions