A good stock-based mutual fund should earn at least 8% per year over a long period of time. Consider the case of Barney and lynn, who were overheard gloating (for all to hear) about how well they had done with their mutual fund investment. "We turned a $30,000 investment of money in 1982 into a $150,000 in 2007"
a. what return (interest rate) did they really earn on their investment? Should they have been bragging about how investment-savvy they were?
No they shouldn’t and i already got the answer for letter A 6.6%
Now part B
The interest rate Barney and lynn earn on their investments is ______%
Can you please state the formula on how to use the cash flow? Not even my book has it. Please let mek know how to do letter B only letter B.