You invested $400,000 in an index fund at the start of year 2017. This fund grew...

 

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You invested $400,000 in an index fund at the start of year 2017. This fund grew at the same average annual rate as the S&P/TSX Index, whose returns over this 5-year period from 2017 to 2021 were as follows: S&P 500 Returns 16.25% -12.72% -16.28% 12.33% 53.987% Required a) What was the average annual growth rate of the value of your index fund? (3 points) b) What was the value of your index fund at the end of 2021? (3 points) You invested $400,000 in an index fund at the start of year 2017. This fund grew at the same average annual rate as the S&P/TSX Index, whose returns over this 5-year period from 2017 to 2021 were as follows: S&P 500 Returns 16.25% -12.72% -16.28% 12.33% 53.987% Required a) What was the average annual growth rate of the value of your index fund? (3 points) b) What was the value of your index fund at the end of 2021? (3 points)

Answer rating: 100% (QA)

To calculate the average annual growth rate of your index fund and the value of your fund a... View the full answer