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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 timeweighted annual yield rate (or annual rate of return). Q6. For the previous question, nd (a) the exact dollarweighted rate of return (b) the approximate DWRR based on (i) simpleinterest 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...
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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
 Chisholm

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