An investor invests $129,000 in a managed fund at the beginning of Year 1. Over the course of the first year the value of the fund increases by $20340. At the end of Year 1, the investor invests another $47,000. Over the course of the second year the value of the fund falls by $20129. At the end of Year 2 the investor invests another $34,000. At the end of Year 3 the value of the fund has increased to $265969, which the investor then withdraws.

What is the annual rate of return from this investment the point of view of the investor?

a.

9%

b.

10%

c.

7%

d.

12%