Respuesta :
Answer:
0.44
Explanation:
The rate of return is the ratio of profit received from an investment to the original invested amount. For this question, this can be calculated as follows:
Amount invested = $2,500
Income received at end of year 2 = $1,800
Income received at end of year 5 = $1,800
Total income received = $1,800 + $1,800 = $3,600
Profit from the investment = $3,600 - $2,500 = $1,100
Rate of return = $1,100/$2,500 = 0.44
Therefore, the resulting rate of return is 0.44.
The rate of return should be 11.40%.
Calculation of the rate of return;
Since the investment, amount is $2,500 and in return two payments of $1800 should be at the end of 2 years and at the end of 5 years.
So, here the rate of return should be
$2,500 = 1800 / (1 + r)^2 + $7,500 / (1 + r)^5
So, on solving this, the rate of return is 11.40%.
Learn more about rate here: https://brainly.com/question/24398796
