3.
Compute the geometric mean (return) and the final
balance after 5 years on a $1,200 investment using the
following information: (Year 4 is Negative 18%)
Year Return
1 12%
2 8%
3 15%
4 -18%
5 5%
3A.
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%)
3B.
If you invested 1,200 at the beginning, how much
would your investment be worth after 6 years (round to the
nearest penny (example – $1,607.45)?
(© Chris
O'Byrne 2024)
4.
Tuition in year 1 were $15,700 and after 4 years of
growth, tuition were $24,800. What is the average growth
rate (geometric mean) over this 4-year period of time?
(convert to % and round to 3 decimal places – example
12.063%)