Question

Suppose an investment offers to triple your money in 12 months (don’t believe it). What rate of return per quarter are you being offered?

Answer 1

Answer: 31.61%

Explanation:

If an investment offers to triple ones money in 12 months. The rate of return per quarter that the person is being offered will be:

(1+r)^4 = 3

1 + r^4 = 3

r^4 = 3-1

r^4 = 2

r = 31.61%

The rate of return is 31.61%