Question

Maddie invests $9,300 in a fund. Four months later, her balance has grown to $10,114 and she deposits $1,000. Five months after that, her balance is $12,298 and she withdraws $1,200. Two years after her initial investment, her balance is $11,485. Compute the (approximate) dollar-weighted annual yield rate.

Answer is 16.19332%. I want steps.

Answer 1

4 month return = 10114-9300

4 month return = 814

after 4 months theamount is10114+1000 =11114

4 month return = 814/9300=8.75

5 month return = 12298-11114

5 month return = 1184

5 month return = 1184/11114=10.65

after this amount is rs = 12298-1200=11098

balance at the end = 11485

return = 11485-11098

return = 387

387/11098= 3.49

weighter return =

4 month retuurn = 8.75*12/4=26.25

9 month return = 10.65*12/9=14.2

2 year retutn = 3.49*12/24= 1.745

average =(26.25+14.2+1.745)/3

average=14.065