A person makes an investment of 100,000 yuan for a period of 20 years, and calculates the return based on compound interest. The annual rate of return in the first 5 years is 15%.

If calculated based on 5-year compound interest:

=100000*(1+15%*5)*(1+10%*5)*(1+8%*10) =472500 yuan

Average annual rate of return:

Absolute average: =(472500-100000)/20=18.625%

Compound interest average: =(472500/ 100000)^(1/20)-1=8.07%

If calculated based on annual compound interest:

=100000*(1+15%)^5*(1+10% )^5*(1+8%)^10=699342.9 yuan

Average annual rate of return:

Absolute average: =(699342.9-100000)/20=29.97%

Compound interest average: =(699342.9/100000)^(1/20)-1=10.21%