What Annual Rate of Return Is Earned on a $10,000

question 21

Multiple Choice

What annual rate of return is earned on a $10,000 investment when it grows to $15,000 in 10 years?

• A) 1.50 percent
• B) 3.97 percent
• C) 4.14 percent
• D) 5.00 percent

---

Definitions:

Residual

The amount remaining after the greater part has been deduced; in finance, often refers to the residual value or remaining interest in an asset.

Stock Splits

occur when a company divides its existing stock into multiple shares to boost the liquidity of the shares, though the overall value of the company doesn't change.

Economic Benefit

The advantage or gain derived from an economic action or activity such as investments, consumption of goods, and services.

Trading Range

The range within which a security or a market index fluctuates over a specified period.