1. An investor earned an arithmetic average return over 4 years of 13.1%. The first year’s return was 13.6%, the second year’s return was -3.80%, the third year’s return was 23.8%. What was the fourth year’s return?
a) 20.94%
b) 13.10%
c) 21.75%
d) 18.80%
2. Compute the future value of a $105 cash flow for the following combinations of rates and times. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
a. r = 8%; t = 10 years
b. r = 8%; t = 20 years
c. r = 4%; t = 10 years
d. r = 4%; t = 20 years