Answer:
a. 5.18%;
b. 10.12%;
c. 6.32%;
d. 9.22%.
Explanation:
We apply the formula of Annual rate of return to calculate for the four cases.
The formula for calculating annual rate of return as below:
Annual rate of return = [tex]\sqrt[year]{Ending value/Beginning value}[/tex] -1 ;
So, for each of the case given, by applying the formula, the detailed calculations for each case will be:
+ For case a :
[tex]\sqrt[12]{769.5/420} -1[/tex] = 5.18%;
+ For case b:
[tex]\sqrt[14]{11,567.45/3,000} -1[/tex] = 10.12%;
+ For case c:
[tex]\sqrt[20]{110,000/32,303.47} -1[/tex] = 6.32%;
+ For case d:
[tex]\sqrt[40]{1,100,000/32,275.63} -1[/tex] = 9.22%.