+10

7 months ago

Business

College

The compound annual returns rate for Geer Corporation with the past three years' returns of 10%, -9%, and 14% is 4.5%.

The compound annual return of an investment is the annualized rate of return that considers the compound effect of the investment for each year.

The compound annual returns rate can be computed using an online finance calculator as below.

The computed rate can be applied to an imaginary investment amount to prove the mathematics as below.

N (# of periods) = 3 years

I/Y (Interest per year) = 4.5%

PV (Present Value) = $1,000

PMT (Periodic Payment) = $0

Results:

FV = $1,141

Total Interest $141

Maths:

Year 1: $1,000 x 4.5% = $1,045

Year 2: $1,045 x 4.5% = $1,092

Year 3: $1,092 x 4.5% = $1,141

Proof:

Year 1: $1,000 x 10% = $1,100

Year 2: $1,100 x -9% = $1,001

Year 3: $1,001 x 14% = $1,141

Thus, the compound annual returns rate for Geer Corporation with the past three years' returns of 10%, -9%, and 14% is 4.5%.

Learn more about the compound annual returns at https://brainacademy.pro/question/15326227

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The

compound annual returns ratefor Geer Corporation with the past three years'returns of 10%, -9%,and14%is.4.5%## What is the compound annual return?

The

compound annual returnof an investment is theannualized rate of returnthat considers thecompound effectof the investment for each year.The

compound annual returns ratecan be computed using anonline finance calculatoras below.The

computed rate can be applied to an imaginary investment amountto prove the mathematics as below.## Data and Calculations:

N (# of periods) = 3 years

I/Y (Interest per year) =

4.5%PV (Present Value) = $1,000

PMT (Periodic Payment) = $0

Results:FV = $1,141

Total Interest $141

Maths:Year 1: $1,000 x 4.5% = $1,045

Year 2: $1,045 x 4.5% = $1,092

Year 3: $1,092 x 4.5% =

$1,141Proof:Year 1: $1,000 x 10% = $1,100

Year 2: $1,100 x -9% = $1,001

Year 3: $1,001 x 14% =

$1,141Thus, the

compound annual returns ratefor Geer Corporation with the past three years'returns of 10%, -9%,and14%is.4.5%Learn more about

the compound annual returnsat https://brainacademy.pro/question/15326227