Wednesday, December 4, 2024

Scott Bilker
Household Math™: Average rate of return
by Scott Bilker
 
Scott Bilker is the author of the best-selling books, Talk Your Way Out of Credit Card Debt, Credit Card and Debt Management, and How to be more Credit Card and Debt Smart. He's also the founder of DebtSmart.com. More about and DebtSmart can be found in the online media kit.

Test your knowledge by trying to solve this DebtSmart, Household Math™ problem! After you complete the problem, you’ll get the solution and explanation.
 
1. You haven’t touched the money in your investment account for the past three years. The effective annual rate of return (how much the amount has changed over the entire year) has varied from year to year. The returns were: 7 percent gain in the first year, one percent gain in the second, and a 7.47 percent loss in the third. What is your average effective annual rate of return over that three-year period?
0.00%
0.18%
0.53%
I don't know!



Copyright ©2024 Press One Publishing. All rights reserved. Use or purchase of any material at DebtSmart.com including but not limited to books, articles, and software is subject to the following  disclaimer/warning.