What average annual rate was earned on this investment


Problem: An investor deposits $180,000 into a fixed, 5-year CD with annual compounding. At the maturity date, the CD is worth $211,000. What average annual rate was earned on this investment?

a. 3.04%

b. 3.23%

c. 14.69%

d. 17.22%

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Finance Basics: What average annual rate was earned on this investment
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