Juan invested $24,000 in a mutual fund 5 years ago. Today his investment is worth $34,616. Find the effective annual rate of return on his investment over the 5-year period.

Answer 1

let the rate be i
24000(1+i)^5 = 34616
(1+i)^5 = 1.44233..
take the 5th root of both sides to get
1+i = .....
isolate i and you are done