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If your parents paid $180,000 for their residence 18 years ago and it is worth $420,000 today, what is the compounded annual yield on their

If your parents paid $180,000 for their residence 18 years ago and it is worth $420,000 today, what is the compounded annual yield on their home investment?

a.

5.56%

b.

7.65%

c.

13.33%

d.

4.82%

You have just paid $175,000 for an low risk investment with an expected compound annual return of 1.8%. How much will the investment be worth in 10 years?

a.

$207,900

b.

$175,000

c.

$212,356

d.

$209,178

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