Answer:
Average rate of return= 10.17
%
Geometric return = 9.23%
Explanation:
<em>Geometric average return</em>
This is compounded annual rate of return which is used to measure the performance of an asset over a certain number of years. It helps to measure the return generated by an investment taking into account the volatility .
Unlike the arithmetic average the geometric average gives an idea of the real rate taking into account of volatility
The formula below
Geometric Return =(1+r1) (1+r2) ...... (1+rn)^1/n
Geometric Average return =
(1.12× 1.19× 1.21× 0.88× 1.26× 0.95)^(1/6) - 1 =0.09233168
Geometric return =0.0923
× 100= 9.23%
Geometric return = 9.23%
Average rate of return
<em>The average return is the sum of the returns over the years dividend by the Numbers of returns</em>
Average return = sum of return / No of returns
(12% + 19% + 21% + (12%) + 26% + (5%))/6 =10.17
%
Average rate of return= 10.17
%
Geometric return = 9.23%
Answer:
The interest revenue is $ 300+$315.62+$887.67+$4500= $ 6003.29
Explanation:
Note 1 : Interest Revenue = $ 30,000 * 4% *3/12= $ 300
Note 2 : Interest Revenue= $ 16,000 * 8 % *90/365= $ 315.62
Note 3: Interest Revenue= $ 18,000 * 10% *180/365= $ 887.67
Note 4: Interest Revenue= $ 150,000 * 12% *6/12= $ 4500
Answer:
$10,000
Explanation:
Monica has a Roth IRA in which she contributed $15,000
The IRA has a current value of $37,500
Monica is 54 years old
She takes a distribution of $25,000
Therefore, the amount of distribtion that will be taxable can be calculated as follows
Amount of taxable distribution= $25,000-$15,000
= $10,000
Hence the amount of distribution that will be taxable to Monica is $10,000
Answer:
20.1%
Explanation:
The computation of the simple rate of return is shown below;
= (operating cost - depreciation) ÷ (purchase of new machine - scrap value)
= ($145,500 - $50,500) ÷ ($505,000 - $35,000)
= ($94,500) ÷ ($470,000)
= 20.1%
hence, the simple rate of return is 20.1%
The same would be considered and relevant
