Question

The net asset value of a mutual fund at the end of each of past 4 years are given below. By using year 2018 as the base period, calculate the simple value index of NAV for years 2019 to 2021 .

Answer 1

To calculate the simple value index of NAV for years 2019 to 2021, divide the NAV for each year by the NAV for the base year (2018) and multiply by 100.

Step-by-step explanation:

To calculate the simple value index of NAV for years 2019 to 2021, we will use the formula:

Value Index = (NAV for the given year / NAV for the base year) x 100

Given the NAV values of the mutual fund for the past 4 years, we will use the NAV for 2018 as the base year. Let's calculate the value index for each year using this formula:

Value Index 2019 = (NAV 2019 / NAV 2018) x 100

Value Index 2020 = (NAV 2020 / NAV 2018) x 100

Value Index 2021 = (NAV 2021 / NAV 2018) x 100