A fund manager decides to charge an annual management fee of 1.5% of asset value. He starts the Fund with assets worth GHS GHS500 million and 100 million shares outstanding. The Funds value is expected to grow by 10% by the end of the year. The Fund will also distribute dividends amounting to GHS2 million.

Compute the net asset value at the beginning of the year and the net asset value at the end of the year. ii. Compute the Fund's annual rate of return.