Answer:
The total compound return over the 3 years is 15.26%
Step-by-step explanation:
Let the initial investment sum be assumed to be X
The total return after each year can be calculated as follows:
After First year: X + (13% of X) = 1.13X
After Second year: 1.13X + (20% of 1.13X) = 1.13X + 0.226X = 1.356X
After Third year: 1.356X - (15% of 1.356X) = 1.356X - 0.2034X = 1.1526X
It is apparent from here that after the third year, the investment has increased the initial X, by 0.1526X, which is 15.26%.
The total compound return over the 3 years is 15.26%
