Zoey Is Planning to Invest $5,000 in a Fixed Income

Multiple Choice

Zoey is planning to invest $5,000 in a fixed income security at the end of each of the next four years. She will receive $23,000 at the end of four years. If interest is compounded annually, what is the annual rate of return earned on the investment?

A) 5.7%
B) 7.3%
C) 8.7%
D) 10.2%
E) 9.4%