top bond fund- an investment of $10,000 in 1997 in the Spartan Investment Grade Bond Fund grew to $14,309.61 in 2002. Use the formula r=(s/p)^1/n -1to find the 5-year averge annual return.
2007-10-15 03:05:14 · 2 answers · asked by Anonymous in Business & Finance ➔ Investing
mm.. I'm seeing it more like at 5.35% now
http://personal.fidelity.com/gen/mflfid/7/316069608.html
As for the math..
14309.61-10000= 4309.61
4309.61/5= 861.922
861.922/10000=.0862=8.62%
I guess this formula doesn't work well in a compounding sense.
I guess you need to tell us what the r, s and p symbols stand for.
Maybe you should show us the answer when you get it :)
2007-10-16 14:02:37 · answer #1 · answered by itsjunglepat 6 · 0⤊ 0⤋
Forget the formula, there's other ways to figure it out. Average annual return is approximately 7.4%.
2007-10-15 03:18:24 · answer #2 · answered by curtisports2 7 · 0⤊ 0⤋