Compounded rate of return on investment


Problem:

Three years ago, you intested in the Future Investco Mutual Fund by purchasing 1,000 shares at the net asset value of $20 per share. Because you did not need the income, you elected to reinvest all dividends and capital gains distributions. Today, you sell your 1,100 shares in this fund for $22.91 per share.

Required:

Question: What is the compounded rate of return on this investment over the three-year period?

Note: Explain in detail and show all computations in proper way.

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Accounting Basics: Compounded rate of return on investment
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