Sara would like to evaluate the performance of her portfolio over the past 10 years. What compound annual rate of return has she achieved if she invested $12,000 ten years ago and now has $25,000?
A) Between 4% and 6%
B) Above 10%
C) Between 8% and 10%
D) Between 6% and 8%

Question

Quizplus · Accepted Answer

PVIF = PV/FV (App. B: 10 periods)
= $12,000/$25,000 = 0.48 Return: between 6% and 8%

Sara Would Like to Evaluate the Performance of Her Portfolio