Answer:
Rate of return per quarter = 7.11%
Explanation:
The rate of return is the percentage return earned if compounding is done quarterly. It can be worked as follows:
r= (FV/PV - 1)- 1× 100
r- rate of return
FV= Future value of the investment after 48 months
PV= Amount invested now
Let the amount invested i.e PV be 10.
If the investment is tripped, the sum earned would be 3×10 = 30
DATA
FV- 30
PV- 10
n-48/3= 16
r= ?
r = ((30/10)^1/16 -1 )× 100
r= 7.1075 × 100 = 7.11%
r= 7.11%
Rate of return per quarter = 7.11%
