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8. [15] An investor makes deposits and withdrawals into a fund. The following table shows all the deposits, withdrawals and the value of the fund
8. [15] An investor makes deposits and withdrawals into a fund. The following table shows all the deposits, withdrawals and the value of the fund at the end of the year. Table 3 Year Deposits Withdrawals Balance 0 2000 1 1000 3200 2 500 2800 3 300 3200 4 400 2900 (a) [10] Find the dollar-weighted rate of interest using both compound interest and simple interest. (b) [5] Find the time-weighted rate of interest (compound interest). 8. [15] An investor makes deposits and withdrawals into a fund. The following table shows all the deposits, withdrawals and the value of the fund at the end of the year. Table 3 Year Deposits Withdrawals Balance 0 2000 1 1000 3200 2 500 2800 3 300 3200 4 400 2900 (a) [10] Find the dollar-weighted rate of interest using both compound interest and simple interest. (b) [5] Find the time-weighted rate of interest (compound interest)
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