The Annual Rate of Return on an Initial Investment of P

Multiple Choice

The annual rate of return on an initial investment of P dollars is given by $r = \left( \frac { A } { P } \right) ^ { 1 / t } - 1$ where A is the current value and t is the number of years since the money was invested. Find the annual rate of return on a $22,000 investment that grew to $32,000 after 10 years. Round to the
Nearest hundredth of a percent.

A) 13.82%
B) 23.82%
C) 0.04%
D) 3.82%