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15 July, 12:22

You have an investment that in today's dollars returns 12% of your investment in year 1, 18% in year 2, 11% in year 3, and the remainder in year 4. Rounded to two places, what is the Duration of this investment

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  1. 15 July, 14:11
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    The duration of this investment will be 14,005‬ years

    Explanation:

    Duration of investment = Sum of (Percentage * TIme)

    = (1 x 12%) + (2 x 18%) + (3 x 11%) + (4 x 59%)

    = 12+36+33+13,924‬

    =14,005‬ years
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