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If a company was bought for $47,000 in the year 2004 and the annual expenses and income are given. What is the ROR (AT) at th


If a company was bought for $47,000 in the year 2004 and the annual expenses and income are given. What is the ROR (Ai* ) at
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Answer #1

Solution : ROR at the end of 2018 ( $ in millions)

Year. Non- interest. Non-interest Annual Return

Income Expenses

2005. 9,827.21.    11,326.13. (1,498.92)

2006.    14,896.24. 14,057.26. 838.98

2007. 12,359.01. 14,615.25. ( 2,256.24)

2008. 10,628.77.   16,399.80 . ( 5,771.03)

2009. 28,114.18. 26,344.96.    1,769.22

2010. 22,750.96. 32,819.35. (10,068.39)

2011. 18,929.61. 31,700.20. (12,770.59)

2012. 16,541.00. 28,469.53. (11,928.53)

2013. 18,092.01. 27,332.61. (9,240.60)

2014 . 17,168.74. 29,663.70. (12,494.96)

2015. 17,057.11 . 22,799,16. (5,742.05)

2016. 16,513.70. 21,700.15 . (5,186.45)

2017. 16,544.71. 21,618.01. (5,073.30)

2018. 16,982.70. 21,080.60. (4,097.90)

Total. (83,520.76)

Average annual return = (83,520.76) / 14 = (5,965.77)

Average rate of return = Average annual return / Initial.       investment X 100

= (5,965.77) / 47,000 X 100

= -12.69%

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