Question: Compute the geometric mean (return) and the final balance after 5 years on a $1,500 investment using the following information: Year Return 1 30% 2
Compute the geometric mean (return) and the final balance after 5 years on a $1,500 investment using the following information:
| Year | Return |
| 1 | 30% |
| 2 | 5% |
| 3 | -20% |
| 4 | 10% |
| 5 | 15% |
[A]What is the average rate of return for this investment over the 5 years(convert to % and round to 3 decimal places - example 12.063%) (geometric mean)?
[B]If you invested $1,500 at the beginning, how much would your investment be worth after 5 years (round to the nearest penny (example - $1,607.45)?
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
