Answer:
$161.50
Explanation:
Amount Invested = $1,000
Number of years = 4
Return for each year = Amount Invested × Interest rate
= $1,000 × Interest rate
For 2012:
Interest rate = 16.35% = 0.1635
Therefore,
Return for 2012 = $1,000 × 0.1635
= $163.50
For 2013:
Interest rate = 31.50% = 0.3150
Therefore,
Return for 2013 = $1,000 × 0.3150
= $315.00
For 2014:
Interest rate = 13.85% = 0.1385
Therefore,
Return for 2014 = $1,000 × 0.1385
= $138.50
For 2015:
Interest rate = 2.90% = 0.029
Therefore,
Return for 2015 = $1,000 × 0.029
= $29.00
Average for 2012-2015
To get this, we add the returns for the 4 years, i.e. 2012-2015, and then divide it by the number of years which 4 as follows:
Average for 2012-2015 = ($163.50 + $315.00 + $138.50 + $29.00) ÷ 4
= $646.00 ÷ 4
= $161.50
Therefore, George's average return for the period is $161.50.
I wish you all the best.
