Answer:
17.10%
Explanation:
The computation of the annual rate of return is shown below:
Annual rate of return = (Future value) ÷ (Present value)^1÷ time period - 1
where,
Future value = $125
Present value = $10
And, the time period is 16 years ago
Now placing these values
So, the annual rate of return is
= 1.17099 - 1
= 17.10%
Basically we applied the above formula so that the annual rate of return could come
