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An investment provided the following annual returns from Year 1 to Year 5 (in order): Year Annual Returns (%) 1 6 2 18 3 -13
An investment provided the following annual returns from Year 1 to Year 5 (in order): Year Annual Returns (%) 1 6 2 18 3 -13 4 19 un 9 a. What average annual compound yield would an investor who invested at the start of Year 1 and sold at the end of Year 5 have realized? Express your answer as a percentage, rounded to 2 decimal places. (3 marks). b. Assume you believe that you are capable of generating investment returns of 10% per year in your investment account. If you save $2050.00 every year on your birthday (i.e. money gets added in to your investment account where it earns 10%), how much will be in your account on your 65th birthday if i. you begin saving on your 45th birthday? (2 marks) ii. you begin saving on your 25th birthday? (2 marks) Assume you make a contribution on your 65th birthday
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