Question

Can someone assist me with the last two questions ?

Answer 1

1. The average rate of return from the end of the first year to the end of the third year is calculated below:

`\begin{gathered} \frac{\text{ Sum of the amount for the first 3 years}}{3} \\ =\frac{\text{ \$1322.27+\$1344.93+\$1367.97}}{3} \\ =\frac{\text{ \$4035.17}}{3} \\ =\text{ \$1345.06} \end{gathered}`

2. The average rate of return from the end of the sixth year to the end of the eight-year is calculated below:

`\begin{gathered} \frac{\text{ Sum of the amount from the sixth to eight year}}{3} \\ =\frac{\text{ \$}1439.49+\text{ \$}1464.16+\text{ \$}1489.24}{3} \\ =\frac{\text{ \$4392.89}}{3} \\ =\text{ \$1464.30} \end{gathered}`