Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

(1 point) Your grandmother gives you 200 dollars for your birthday, which you invest in a mutual fund on January 1, 2002. On June 1,

image text in transcribed

(1 point) Your grandmother gives you 200 dollars for your birthday, which you invest in a mutual fund on January 1, 2002. On June 1, 2002, she gives you 630 dollars for your high school graduation, which you immediately deposit into your mutual fund. On January 1, 2003, you take out your calculator and find that your dollar weighted rate of return for the previous year was 8.8 percent. On April 1, 2003 your fund balance is 1500 dollars and you then deposit your grandmother's Easter gift of X dollars. On January 1, 2004, your fund balance is 2500 dollars and you calculate that your time weighted rate of return for the previous year was 12.7 percent. What is X? (As usual, assume simple interest for the dollar weighted rate of return, and months of equal length.) Answer = 1377.13546679 dollars

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions