This preview shows page 1. Sign up to view the full content.
Unformatted text preview: the year 2009 are as follows: There are two deposits made: $200 on 02/28/09 and Date ((MM/DD/YY)) Fund values 01/01/09 1,000 03/01/09 1,240 09/01/09 1,600 11/01/09 1,080 01/01/10 900 $200 on 08/31/09. Also, there are two withdrawals made: $500 on 10/31/09 and $200 12/31/09. Then, nd the time-weighted annual yield rate (or annual rate of return). Q6. For the previous question, nd (a) the exact dollar-weighted rate of return (b) the approximate DWRR based on (i) simple-interest approximation; (ii) basic midpoint rule. Q7. Amy borrows $10,000 from Ale at time 0. She pays back 2000 after 1 months, 3000 after 6 months and 5500 after 10 months. Find the annual interest rate on the loan. Q8. In the previous question, assume Ale can reinvest the payments received by Amy at a 10% rate convertible monthly. Then what is Ales return on this investment? 1...
View Full 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.
- Fall '09