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Step 2: During the next few years, this person invests more money in the stock market. In total, the following investments are made, and
Step 2: During the next few years, this person invests more money in the stock market. In total, the following investments are made, and all investments are made one year apart. Initial investment = 1400 1400 3rd investment = 4th investment = Value of investments five years after initial investment = Set up the appropriate equation to solve and use technology such as Desmos or Wolfram Alpha to solve it and help find the average annual yield. (Round as directed in Hawkes.) EQUATION: Technology Used: 1900 2nd investment = 1900 5th investment = 8400 Average Annual Yield = 2200 % Neatly, completely, and clearly communicate your solution processes on these pages. Your work should be easy to follow for any competent College Algebra student. Application #1: Measuring Performance of Multiple Investments Stock markets fluctuate every day. Some stocks increase in value, some decrease, and portfolios increase and decrease in value based on the owner's investments. To determine how well a portfolio is doing, the average rate of return (a.k.a. average annual yield) needs to be accurately calculated. This value is often miscalculated (intentionally or unintentionally). misleading investors of the actual performance of their portfolios. In this problem, you will be accurately calculating the average annual yield of a person's investments. Step 1: A person made the following investments in the stock market, and wants to know the true average annual yield of these investments. The two investments were made exactly one year apart. Initial investment = $1400 Value of investments two years after initial investment = Use algebra to set up and solve the appropriate equation to find the average annual yield of these investments. (Round as directed in Hawkes.) 2nd investment $1400 $2604
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