document.write( "Question 1187335: 5. Harris had an investment that yielded the following results over the last 4 years:
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Algebra.Com's Answer #818295 by ikleyn(52786) $\"\"$ $\"About$

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\n" ); document.write( "Harris had an investment that yielded the following results over the last 4 years:
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document.write( "When the yield coefficients (the growing coefficients) of the account are given as the percentages,\r\n" );
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document.write( "from year to year, as in this given problem, which means\r\n" );
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document.write( "     = 1.10 in the 1st year;   = 1.07 in the 2nd year;   = 1.135 in the 3rd year;   = 0.88 in the 4th year,\r\n" );
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document.write( "then the geometric mean DENOTES the geometric mean of these groving coefficients  1.1, 1.07, 1.135 and 0.88.\r\n" );
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document.write( "It MAKES SENSE, since allows to measure / (to evaluate) the average effective annual growing coefficient over the four years.\r\n" );
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document.write( "This geometric mean of the growing coefficients obeys to the usual definition\r\n" );
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document.write( "    G(1.1, 1.07, 1.135, 0.88) =  =  =  1.041271 = 1.04 (rounded).    ANSWER\r\n" );
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document.write( "The geometric mean growing coefficient, effective over the four years, is 1.04, and the average percentage yield is about 4%.\r\n" );
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\n" ); document.write( "\n" ); document.write( "See my lesson\r
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