Reduce the Fraction to Lowest Terms by First Factoring the Numerator

question 171

Essay

Reduce the fraction to lowest terms by first factoring the numerator and denominator into the product of prime factors and then dividing out any factors they have in common.

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Definitions:

Compound Annual Rate

The rate of return that would be required for an investment to grow from its beginning balance to its ending one with the compounding effect considered over a period of one year.

Compound Annual Returns

Measures the geometric average amount of money earned over a specified time period per year, taking into account the effect of compounding.

Equity Mutual Fund

A type of mutual fund that primarily invests in stocks, seeking to offer returns based on the performance of these equities.

Diversified Equity

An investment strategy that involves spreading investments among various stocks to reduce risk.