Question 165816: Can You Help me?
132.) Top bond fund. An investment of $10,000 in the Emerging Country Debt Fund in 2001 was worth $24,780 in 2006 (www.money.com) Use the formula :
r=(s/p)^1/n - 1 to find the 5 - year average annual return.
R is determined by the initial investment P, the number of years n, and the amounts S that it is worth after n years.
P = 10,000
n = 2006 - 2001 = 5 years
s = 24,780
We are searching for the value of r.
Here is the formula:
r = (24,780/10,000)^1/6 - 1
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! An investment of $10,000 in the Emerging Country Debt Fund in 2001 was worth $24,780 in 2006 (www.money.com) Use the formula :
r=(s/p)^1/n - 1 to find the 5 - year average annual return.
R is determined by the initial investment P, the number of years n, and the amounts S that it is worth after n years.
P = 10,000
n = 2006 - 2001 = 5 years
s = 24,780
We are searching for the value of r.
Here is the formula:
r = (24,780/10,000)^1/6 - 1
r = (2.478)^(1/6) -1
r = 1.16328..- 1
rate = 0.16328
rate = 16.33 %
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Cheers,
Stan H.
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