5.2.4S An investor deposits 50 in an investment account on January 1. The following summarizes the activity in the account during the year: Date March 15 June 1 October 1 Value Immediately Before Deposit 40 80 175 Deposit 20 80 75 On June 30, the value of the account is 157.50. On December 31, the value of the account is X. Using the time-weighted method, the equivalent effective annual yield during the first 6 months is equal to the (time-weighted) effective annual yield during the en- tire 1-year period. Calculate X.

5.2.4S An investor deposits 50 in an investment account on January 1. The following summarizes the activity in the account during the year: Date March 15 June 1 October 1 Value Immediately Before Deposit 40 80 175 Deposit 20 80 75 On June 30, the value of the account is 157.50. On December 31, the value of the account is X. Using the time-weighted method, the equivalent effective annual yield during the first 6 months is equal to the (time-weighted) effective annual yield during the en- tire 1-year period. Calculate X.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

5.2.4S An investor deposits 50 in an investment account on January 1. The
following summarizes the activity in the account during the year:
Date
March 15
June 1
October 1
Value Immediately
Before Deposit
40
80
175
Deposit
20
80
75
On June 30, the value of the account is 157.50. On December 31,
the value of the account is X. Using the time-weighted method,
the equivalent effective annual yield during the first 6 months is
equal to the (time-weighted) effective annual yield during the en-
tire 1-year period. Calculate X.

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