You invest $100,000 today. The annual ROI on the investment is: year 1 = 12 percent; year 2 = negative 24.6 percent; year 3 = 33.7 percent; and year 4 = 29.6 percent. Determine the average annual ROI on the investment. You may find the following two forms helpful:
|
Year |
Investment Value at Start of Year |
Earnings for Year |
ROI for Year |
Investment Balance at End of Year |
|
1 |
$100,000.00 |
|
12.00% |
|
|
2 |
|
|
–24.60% |
|
|
3 |
|
|
33.70% |
|
|
4 |
|
|
29.60% |
|
|
Year |
Investment Value at Start of Year |
Return at ? % |
Investment Value at End of Year |
ROI for Year |
|
1 |
$100,000.00 |
|
|
|
|
2 |
|
|
|
|
|
3 |
|
|
|
|
|
4 |
|
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