Chapter 2 section 6

Chapter 2 section 6 - Zaki has a bank account balance of X...

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Chapter 2, Section 6 Use the following information about an investment fund for problems 17 – 19: Time Fund Value Before Contributions Contributions 0 10,000 0 1/4 8,000 -3,000 1⁄2 8,000 3,000 3⁄4 12,000 3,000 1 15,000 0 17. Calculate the exact annual dollar weighted return for the fund. 18. Estimate the annual dollar weighted return for the fund assuming simple interest. 19. Estimate the annual dollar weighted return for the fund assuming simple interest and all cash flows occurred in the middle of the year. 20.
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Unformatted text preview: Zaki has a bank account balance of X on January 1, 2000. During the next two years Zaki deposits 8000 into his account and withdraws 3000. On January 1, 2002, Zaki has a bank account balance of 28,400. Assuming that all cash flows occur on January 1, 2001, Zaki estimates his annual dollar weighted return assuming simple interest to be 4.5383664%. Calculate X. 21. Book Problem 2.6, Number 2. Answers: 17. 20.1352% 18. 20.0000% 19. 17.3913% 20. 21,200 21. 2.6954%...
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Chapter 2 section 6 - Zaki has a bank account balance of X...

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