Question
Q1. A project returned +30%, then 30%. Thus, its arithmetic average rate of return was 0%. If you invested $25,000, how much did you end
Q1. A project returned +30%, then 30%. Thus, its arithmetic average rate of return was 0%. If you invested $25,000, how much did you end up with? Is your rate of return positive or negative? How would your overall rate of return have been different if you first earned 30% and then +30%?
Q2. A project returned +50%, then 40%. Thus, its arithmetic average rate of return was +5%. Is your rate of return positive or negative?
Q3. You opened a savings account 8 years ago, and the account currently has $900. You only made one $600 deposit on the day the account was created, and never withdrew or deposited again. What was the APR (i.e. monthly compounded rate) if it was constant throughout time?
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