You invested $1,000 through your broker three years ago. Your account balance at the beginning of each
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Question:
You invested $1,000 through your broker three years ago. Your account balance at the beginning of each period is shown in the table below.
Time Account balance Annual return
0 $1,000 n.a
1. $1,200
2. $1,500
3. $1,000
- Calculate the annual return for each year. Show your calculations in the table.
- Your broker called to tell you the good news that your average annual return over the three years has been 4%. Where did he get this number?
Related Book For
Thomas Calculus Early Transcendentals
ISBN: 9780321884077
13th Edition
Authors: Joel R Hass, Christopher E Heil, Maurice D Weir
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