Question
(1 point) Your grandmother gives you 290 dollars for your birthday, which you invest in a mutual fund on January 1, 2002. On June 1,
(1 point) Your grandmother gives you 290 dollars for your birthday, which you invest in a mutual fund on January 1, 2002. On June 1, 2002, she gives you 740 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 5.3 percent. On April 1, 2003 your fund balance is 1100 dollars and you then deposit your grandmother's Easter gift of X dollars. On January 1, 2004, your fund balance is 1900 dollars and you calculate that your time weighted rate of return for the previous year was 12.5 percent. What is X ? (As usual, assume simple interest for the dollar weighted rate of return, and months of equal length.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started