An investment earns 10% the first year, earns 15% the second year, and loses 12% the third year. The total compound return over the 3 years was ______.

An investment earns 10% the first year, earns 15% the second year, and loses 12% the third year. The total compound return over the 3 years was ______.

An investment earns 10% the first year, earns 15% the second year, and loses 12% the third year. The total compound return over the 3 years was ______. 






A. 41.68%

B. 11.32%

C. 3.64%

D. 13%



Answer: B. 11.32%


(1.10)(1.15)(1 - .12) - 1 = 11.32%


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