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Let's break down the problem and solve for the annual return step by step.

You made two investments:
1. \$700 in 2013.
2. \$1,000 in 2014.

By 2018, the total value of your stocks is \$2,000. We will calculate the average annual return using the formula for **Internal Rate of Return (IRR)** over multiple cash flows, but we'll start with an approximation through weighted returns.

### 1. Total Investment:
The total amount invested is:
\[
700 + 1000 = 1700 \text{ USD}.
\]

### 2. Time Periods:
- The \$700 invested in 2013 has been growing for **5 years** (from 2013 to 2018).
- The \$1,000 invested in 2014 has been growing for **4 years** (from 2014 to 2018).

### 3. Final Value in 2018:
The total value of the stocks is \$2,000 in 2018.

Now, we can calculate the **overall return (R)** by finding the rate that equates your initial investments to the final value of \$2,000. Using the formula for the **Compound Annual Growth Rate (CAGR)** for each investment:

\[
\text{CAGR} = \left( \frac{ \text{Final Value}}{ \text{Initial Value}} \right)^{1/n} - 1
\]
Where:
- $ n $ is the number of years.

### Solving for the combined return using multiple cash flows will require iteration or an IRR approach.

Let me calculate that for you.The calculated annual return is approximately **-3.61%**. This negative return suggests that, based on the cash flows provided and the total value in 2018, the overall growth was insufficient to generate a positive return over the time period.

Would you like more details on this calculation, or do you have any further questions?

Here are five related questions you might consider:
1. What is the difference between Internal Rate of Return (IRR) and Compound Annual Growth Rate (CAGR)?
2. How would your annual return change if you sold your stocks earlier, say in 2017?
3. How can different investment periods affect overall portfolio growth?
4. Can external factors like inflation affect real returns on investments?
5. How would adding more investments between 2015 and 2017 influence the return?

**Tip:** Always consider the effects of compounding when evaluating the performance of long-term investments.

You bought $700 of stocks in 2013. You bought $1,000 of stocks in 2014. The stocks are worth a total of $2,000 in 2018. What was your annual return?

Learn how to calculate the annual return on stock investments made in different years using the concepts of Compound Annual Growth Rate (CAGR) and Internal Rate of Return (IRR). This guide provides a step-by-step solution for investments of $700 in 2013 and $1,000 in 2014, growing to a total of $2,000 by 2018.

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