How to calculate the return in mutual fund for the below Scenario!?
1999=12.8, 2000=17.8, 2001=22.2, 2002=4.9 .
Answers:
If those annual rates of returns are for the mutual fund, then simply geometrically link them. Your return would be (1.051*1.128*1.178*1.222*1.049... = 12.35% per year. Cumulative return was 79%. You should have had roughly 420k in the fund at the end of 2002.
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