Problema Solution
Sam has a savings account that increased in value over a twelve month period from $8665.00 to $9006.04. He made no deposits or withdrawals at this time. What annual percent did he receive for the 12 month period?
Answer provided by our tutors
Here,
V0 = $8665.00
V1 = $9006.04
So, Annulalize percentage Return = ( V1-V0)/ V0
= (9006.04 - 8665.00)/ 8665.00
=341.04/ 8665.00
= 3.94%