Annual average returns for fund

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For a recent 10-year period, a mutual fund company reported performance (average annual return) for two of its funds as follows:

Fund Average Return Equity-Income Fund 10.50 percent

Personal Strategy Growth Fund 9.50 percent

Assume you invested $10,000 in each fund at the beginning of this 10-year period.

(a) How much difference would there be in the ending wealth (after 10 years) between the two funds?

(b) For the same two funds, the ending wealth after five years was $1.45 per dollar invested for the Equity-Income Fund and $1.25 per dollar invested for the Personal Strategy Growth Fund. What were that annual average returns for each fund for this five-year period?

Reference no: EM132540916

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