The future value of investment is calculated as follows Future value = Present value ( 1+ interest rate) n $ 18,205 = $ 4500 ( 1+r)10 ( 1+r)10 = 4.0456 r = 15% The annual rate of return to earn on this investment = 15% Solution The future value of investment is calculated as follows Future value = Present value ( 1+ interest rate) n $ 18,205 = $ 4500 ( 1+r)10 ( 1+r)10 = 4.0456 r = 15% The annual rate of return to earn on this investment = 15%.