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You deposited $75,000 in your mutual fund account today. You make no more deposits into your...

You deposited $75,000 in your mutual fund account today. You make no more deposits into your account, but 10 years from today your mutual fund account balance is $200,000. What annually compounded rate of return have you earned on your mutual fund over this time period?

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Expert Solution

$200,000 = $75,000 * (1 + r)10

2.666667 = (1 + r)10

1 + r = 1.1031

r = 0.1031

r = 10.31%

jeff jeffy answered 2 years ago
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