Question

18 years after purchasing shares in a mutual fund for $6300, the shares are sold for $11200 what is the total return and the annual return percentage

Answer 1

A = 11,600

P = 6,000

Total return = 11600-6000/6000 X 100%= 93.3%= (11600/6000) (1/17)– 1= 0.03954 * 100%= 3.954= 4.0%.

Explanation: