Initially, $80,000 is put into an investment account. Three months later, $7,000 is withdrawn. Two years after the initial investment, the account is worth $83313.70. Assuming a dollar-weighted method for the first year, and a time-weighted method for the second year, the effective annual interest rate was equal to the same value each year. What is that value?
Initially, $80,000 is put into an investment account. Three months later, $7,000 is withdrawn. Two years...
Determine the effective annual yield for each investment. Then select the better investment. Assume 360 days in a year. 11% compounded monthly: 11.25% compounded annually %. The effective annual yield for a 11% compounded monthly investment is (Round to two decimal places as needed.) Determine the effective annual yield for each investment. Then select the better investment. Assume 360 days in a year. 3% compounded semiannually; 2.9% compounded daily %. The effective annual yield for a 3% compounded semiannually investment...
An investor deposits 50 in an investment account on January 1 . The following summarizes the activity in the account during the year: Date March 15 June1 October 1 Value Immediately 40 80 175 Before Deposit Deposit 20 80 75 On June 30, the value of the account is 157.50 . On December 31, the value of the account is X. Using the time-weighted method, the equivalent annual effective yield during the first 6 months is equal to the (time-weighted)...
answer should be 6.175% On January 1, an investment account is worth $500,000. On April 1, the account value has increased to $530,000, and $120,000 of new principal is deposited. On August 1, the account value has decreased to $575,000, and $250,000 is withdrawn. On January 1 of the following year, the account value is $400,000. Compute the yield rate using the dollar-weighted method.
Ten years ago, you put $150,000 into an interest-earning account. Today it is worth $325,000. What is the effective annual interest earned on the account, assuming yearly compounding? (A) $75,000 (B) 6.00% (C) 7.8% (D) 8.00%
7 years ago, you put $166,308 into an interest-earning account. Today it is worth $255,924. What is the effective annual interest earned on the account? Round your answer to the nearest tenth of a percent. For example, if you get 15.1 %, write 0.151. If you deposit $29,484 in an account that earns 9% per year, compounded annually. What would be the balance in the account at the end of 38 years?
. On the day Saffron was born, her parents put $800 into an investment account that promises to pay a fixed interest rate of 7 percent per year. How much money will she have in this account when she turns 18? Round to two decimal places. 2. At what rate must $311.25 be compounded annually for it to grow to $612.28 in 10 years? Submit your answer as a percentage and round to two decimal places. How much money must...
6. An investor deposits $2000 into a fund at time 0. Four months later when his balance has declined to $1900 he withdraws $300. After four more months his balance is $1800 and he deposits $500. At the end of a year his balance is 2400. a. Find this investor' s (dollar weighted) annual rate of return. (You can assume simple interest.) b. find the fund's annual (time weighted) rate of return. 6a. Current spot rates are si- 0.025, s2...
Problem 1.8 You deposit $5,000 in an account earning 5% interest compounded semi-annually for 2 years and 7% interest compounded quarterly thereafter. What is the account value after 7 years? Problem 1.9 What is the equivalent effective annual (compound) interest rate in Problem 1.8? Problem 1.10 You deposit $5,000 in an account that earns 5% interest compounded annually in years 1 and 2, and thereafter a continuous rate δ(t) = 2/(t + 1) (t > 0). What is the value...
Problem 1.8 You deposit $5,000 in an account earning 5% interest compounded semi-annually for 2 years and 7% interest compounded quarterly thereafter. What is the account value after 7 years? Problem 1.9 What is the equivalent effective annual (compound) interest rate in Problem 1.8? Problem 1.10 You deposit $5,000 in an account that earns 5% interest compounded annually in years 1 and 2, and thereafter a continuous rate δ(t) = 2/(t + 1) (t > 0). What is the value...
On the day Saffron was born, her parents put $2,500 into an investment account that promises to pay a fixed interest rate of 8 percent per year. How much money will she have in this account when she turns 18? Round to two decimal places. .. At what rate must $311.25 be compounded annually for it to grow to $612.28 in 10 years? Submit your answer as a percentage and round to two decimal places. 3. How much money must...