Maria just inherited $10,000. Her bank has a savings account that pays 4.1% interest per year. Some of her friends recommended a new mutual fund, which has been in business for three years. During its first year, the fund went up in value by 11%; during the second year, it went down by 19%; and during its third year, it went up by 15%. Maria is attracted by the mutual fund's potential for relatively high earnings but concerned by the possibility of actually losing some of her inheritance. The bank's rate is low, but it is insured by the federal government. Find the expected value of her investment after three years if she invests in the mutual fund.

EV=$

year 1 1.11

year 2 .81
year 3 1.15
mean = 1.023 or 2.3% per year
10,000 * (1.023)^3 = 10,705.99

To find the expected value (EV) of Maria's investment after three years in the mutual fund, we need to calculate the average return for each year and then apply those returns to the initial investment.

Let's break down the calculation:

1. Calculate the annual returns:
- First year: 11% increase = 1 + (11/100) = 1.11
- Second year: 19% decrease = 1 - (19/100) = 0.81
- Third year: 15% increase = 1 + (15/100) = 1.15

2. Calculate the final value after three years:
- Initial investment: $10,000
- Year 1: $10,000 x 1.11 = $11,100
- Year 2: $11,100 x 0.81 = $8,991
- Year 3: $8,991 x 1.15 = $10,338.65

3. Calculate the expected value:
- Sum up the final values after each year: $10,000 + $11,100 + $8,991 + $10,338.65 = $40,429.65
- Divide the sum by the total number of years to get the average investment value per year: $40,429.65 / 3 = $13,476.55

Therefore, the expected value of Maria's investment after three years in the mutual fund is $13,476.55.