2. On January 1 an investment account is worth $100,000. On May 1, $30,000 is added. On November 1, $42,000 is withdrawn. On January 1 of the next year the account is again worth $100,000. Compute the yield rate for this year by: (1) The exact method (2) The dollar weighted method and (3) By assuming that all contributions and withdrawals were made on July 1. Answers: (1) 10.62% (2) 10.62% and (3) 12.77% or 12.74% 3. Suppose in problem 2 above that the balance on May 1, before the $30,000 deposit, is $106,000 and that the balance on November 1, before the $42000 withdrawal is $140,000. Compute the yield rate for this account using the time weighted method. 2. On January 1 an investment account is worth $100,000. On May 1, $30,000 is added. On November 1, $42,000 is withdrawn. On January 1 of the next year the account is again worth $100,000. Compute the yield rate for this year by: (1) The exact method (2) The dollar weighted method and (3) By assuming that all contributions and withdrawals were made on July 1. Answers: (1) 10.62% (2) 10.62% and (3) 12.77% or 12.74% 3. Suppose in problem 2 above that the balance on May 1, before the $30,000 deposit, is $106,000 and that the balance on November 1, before the $42000 withdrawal is $140,000. Compute the yield rate for this account using the time weighted method