The formula FV=2,000(1.05)10−10.05 is used to calculate the future value of an investment. Identify the annual rate of return on the investment.(1 point) Responses 1.05% 1.05% 10% 10% 5% 5% 20%
The correct annual rate of return on the investment is 5%.
This can be determined by looking at the formula: FV=2,000(1.05)^10. The 1.05 represents the growth rate of the investment per year, or in other words, the annual rate of return.