We will find the return as follows:
[tex]AR=(\frac{\text{FVI}}{IVI})^{\frac{1}{n}}[/tex]Here AR is the annual return, FVI is the final value of investment and IVI is the initial value of investment and n is the number of years. Now, we replace:
[tex]AR=(\frac{9250}{8000})^{\frac{1}{5}}\Rightarrow AR\approx1.029462068[/tex]So, the annual return is approximately 1.03.
