Question

21. Given the cash flows below, answer the following question (provide your answer and show work in your uploaded document) (maximum points: 3.33)

                                    Date                Cash Flow       Balance

                                    7/1                      Begin            2,150

                                    7/31                    ------              2,280

                                    8/1                      $180             2,460

                                    8/31                    ------              2,561

                                    9/1                      $100             2,661

                                    9/30                 End               2,500

Calculate the average monthly percent rate of return using the time-weighted method over the three months provided here round your answer to 3 decimals in the form 0.000) Show your work in the uploaded document

Answer 1

A B с D Month Opening cash flows Closing cash flows Income Rate of retune {[(B-A)+C]/A} 0.060 July August September 2,150.00 2,280.00 2,561.00 2,280.00 2,561.00 2,500.00 0.00 180.00 100.00 0.202 0.015 Average Monthly percentage rate of return using time-weighted method = [(1+0.060)*(1+0.202)*(1+0.015)]-1 =[1.060 * 1.202 * 1.015)-1 =[1.293)-1 = 0.293