The Investment Research Institute reported in its Mutual Fun

The Investment Research Institute reported in its Mutual Fund Fact Book that the number of mutual funds increased from 3725 in 1999 to T977 in 201S What is the geometric mean annual percent increase m the number of funds? 1.03% 3.37% 2.09% 7.11% 4.87%

Solution

Geometric Mean Annual % increase :

(1+x)^(2015-1999) = 7977 / 3725

=> (1+x)^16 = 7977 / 3725

=> x = ( 7977 / 3725 )^(1/16) - 1

=> 0.0487
So the answer is E , 4.87%