Answer:
Annual return = 30.52%
Explanation:
The annual return is the average rate of return earning over the investment period assuming interest rate is compounded annually.
This can be worked using the formula below:
Annual rate of return=(C/I)^1/n - 1 × 100
C= Current value
I-Initial cost
n- Number of years
Current Value = 84,300
Initial amount invested= 4,500
n-11
Annual return = (84,300/4,500)^(1/11) - 1 × 100
= 0.3052
× 100 = 30.52%
Annual return = 30.52%
