Sunday
May 19, 2013

# Homework Help: help

Posted by Anonymous on Sunday, November 1, 2009 at 10:49am.

An investment of \$10,000 in the
Emerging Country Debt Fund in 2001 was worth \$24,780
in 2006 find the 5-year average annual
return.

• help - finance - Ms. Sue, Sunday, November 1, 2009 at 10:51am

Are you really taking a school class called "help?"

• help - Judy, Sunday, November 1, 2009 at 1:25pm

Since S=24,780 and P=10,000, you get
r = (24,780/10,000)^(1/(5-1)] = 1.2546 = 125%
Comment: The "1" might refer to the investment at the beginning of each year;
then the 0.25 would be the interest rate.
For example 10,000*(1+0.2546)^4 = \$24,775
This would be the value after 4 years if 10,000 was compounded yearly
at 25%

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