When your father was born 46 years ago, his grandparents deposited $450 in an account for him. Today, that account is worth $25,000. What was the annual rate of return on this account

9.1%

Explanation:

To calculate the annual rate of return on this account you can use the following formula:

r = (FV / PV) ^1/n - 1, where

r = rate of return

FV = future value = 25,000

PV = present value = 450

n = number of periods of time = 46

r = (25,000/450) ^ (1/46) - 1

r=55.56^0.0217-1

r=1.091-1

r=0.091 → 9.1%

According to this, the annual rate of return on this account was 9.1%.