At the beginning of the year an investment fund was established with an initial deposit of...
At the beginning of the year an investment fund was established with an initial deposit of $1,000. A new deposit of $500 was made at the end of four months. Withdrawals of $200 and $100 were made at the end of six months and eight months, respectively. The amount in the fund at the end of the year is $1,272. Find the approximate effective rate of interest earned by the fund during the year using the dollar-weighted rate of return formula.
please solve it without table and excal
Homework Answers
Stating the Facts given.
Initial Investment- $1000
New deposit- $500 at the end of four months
Withdrawls- $200 and $300
Amount at the end- $1272.
Rate of Return= total deposit= 1000+(500*3)=1500
total withdrawl= 500
net 1000
effective rate 272/1000*100
27.2%
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