ACTSC 231 quiz2-soln

ACTSC 231 quiz2-soln - 1 . ( 6pts.) A rthur b uys $ 2,100 w...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
1. (6pts.) Arthur buys $2,100 worth of stock. Six months later, the value of the stock has risen to $2,200 and Arthur buys another $900 worth of stock. After a.nother g$ months, Arthur's holdings a.re worth $3,000 and he sells off $600 of them. Still another Fjx months later (i.e. one and half yea,rs later since his initial purchase of stock), Arthur finds that his stock has a value of $3,200. (a) Fhd the simple interest approximate to Arthur's arnual dollar-weighted yield rate. (b) Find the basic midpoint approximate to Arthur's annual dollar-weighted yield (c) Find the annual time-weighted yield rate Arthur experiences over his investment. Round your answers to the nearest hundredth of a percent. il : (D To=2rloo. E =?,JoQ, Cyr=floo. C%=-6rt. I = F, -T" - Cy, - C% = j/|oc -J,Joc -/ec'([o) , -8oo Tt*4/* 2i,'1t. i,AM "lT*rv*e- +o q/' e'nwl P^lfR ,/'Ls^ scNS{i4 l8 T ,,, 7-,r# ltL (l+zs ) -:*,o;*il,.?.r: ,,,,,8 l,st lr*l@"s(z)4*) I TMI-+ \-' 1r=($tif-! - 2o'3j,Y" $) l,r; \+ --J---r b#-*1+Il,trsrY6 U+nnJ f" + c') C =f"o--6oo =Joa :Z 'i,n;2)' +SI ,,, (*in f =P Ei #=Tfr m"w,, * =.t3fl761 =z 1+ =(,s-rt l{D+ ;L:J}''6}
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2. ( pt.) On January 15, 2000, Enterprise A loans $6,000 to Enterprise B and $17,000 to Enterprise C. Enterprise B repays Enterprise A $7,000 on Ja,nuary 15, 2002 and half of this money is reinvested at a SVo annual effective rate. Enterprice C repays Enterprise A $22,500 on January 15,2004. Let z denote the annual yield rate received
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/21/2011 for the course ACTSC 231 taught by Professor Chisholm during the Fall '09 term at Waterloo.

Page1 / 6

ACTSC 231 quiz2-soln - 1 . ( 6pts.) A rthur b uys $ 2,100 w...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online