Question
Frank invests 1000 at the beginning of each calendar year 2005, 2006, 2007, and 2008. Investment Investment Year Rates Year 1 Year 2 9.00%
Frank invests 1000 at the beginning of each calendar year 2005, 2006, 2007, and 2008. Investment Investment Year Rates Year 1 Year 2 9.00% 9.50% 9.70% 9.80% 8.40% 8.35% 7.25% 6.43% 4.25% 4.00% 3.25% Year 2005 2006 2007 2008 2009 2010 Year 3 9.75% 9.30% 7.52% 5.15% Portfolio Rates 10.20% 9.85% 8.25% A) What is the total amount of interest credited to the account in 2009? B)What is the value of the fund at the end of 2010? C) What is the average annual effective time-weighted rate of return for this four year period?
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