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Take a Test-Oshayne Whittingham-Google Chrome Secure https//www.mathxl.com/Student/PlayerTest.aspx?testld-1 728735728centerwin-yes Principles of Business Financene Test:Exam 2 Time Remaining: 02:39.46 Submit Test This Question: 1 pt 34 of 41 (7 complete This Test: 41 pts possible Stephen's grandmother deposed $100 in an nvestment accout or him when he was born. 25 years ago The account ia now worth $1,500. What was the average rate of return on the account? A. 1500% OB, 11 44% C. 16 67% OD, 60096

Explanation / Answer

PV = FV/(1+r)^n

PV - Present value

FV - Future value

r - Interest rate

n - no. of periods

100 = 1500/(1+r)^25

r = 15^(1/25) - 1 = 0.1144 = 11.44%

Option B.

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