An account has a balance of 4,500 on 1/1/2015. Three months after 1/1/15 the balance was...

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An account has a balance of 4,500 on 1/1/2015. Three months after 1/1/15 the balance was 4,030 just before a deposit of 400 w

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Answer 1

Answer #1

Calculation of weighted yield of investment for the year 2015.

Opening balance = 4500

Closing balance = 4990

Net deposit = 400 - 200 = 200

So total Yield = 4990- 4500 - 200 = 290

Dollar weighted yield = Yield / Weighted investment

= 290/ [ 4500 + (400 *9/12) -( 200*3/12) ]

=290/4750

= 0.0613 (rounded off)

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Answer 2

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