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You gave $770 to your cousin. As a token of gratitude, your cousin gave you $1,190 at the end of the year instead of $770. If you look at this as an investment, then your annual rate of return would be_____________

Respuesta :

Answer:

annual rate of return  = 54.55%

Explanation:

given data

gave to your cousin present value = $770

cousin give you future value = $1190

solution

we get here annual rate of return that is express as

annual rate of return = [tex]\frac{future\ value}{present\ value}[/tex] - 1    ...................1

put here value and we get

annual rate of return = [tex]\frac{1190}{770} - 1[/tex]

solve it we get

annual rate of return  = 54.55%

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