Acustomer invests 5. 10 years later, the investment is worth 1. the customers annual compouned rate of return is?

The rate of interest is 7.18 %

Explanation:

To calculate the rate of interest, we use the equation used for the interest compounded monthly follows:

A = Amount after time period 'T' = $100,000

P = Principal amount = $50,000

R = rate of interest = ?

n = Number of times interest applied per time period = 1   (annually)

T = time period = 10 years

Putting values in above equation, we get:

Calculating the rate of interest in percentage:

Hence, the rate of interest is 7.18 %