Suzanne and Kerry entered into a financial agreement. On January 1, 2014, Suzanne gave $8400 to Kerry. On April 1, 2014, Kerry repaid $2800 to Suzanne, On July 1, 2014, Kerry repaid $3360 to Suzanne, and Suzanne immediately place half of this payment into an account at Harlow Savings and Loan which eams at effective monthly compound interest rate of 0.8% Finally, on January 1, 2015, Kerry gave Suzanne $2800 to completely repay the loan. At the same time, Suzanne closed her account at Harlow Savings and Loan and withdrew the money in the account. What is Suzanne's dollar-weighted rate of return in this financial agreement, assurring simple interest for the rate of return? (Round your answer to four places after the decimal) Answer = %
Suzanne and Kerry entered into a financial agreement. On January 1, 2014, Suzanne gave $8400 to Kerry. On April 1, 2014, Kerry repaid $2800 to Suzanne, On July 1, 2014, Kerry repaid $3360 to Suzanne, and Suzanne immediately place half of this payment into an account at Harlow Savings and Loan which eams at effective monthly compound interest rate of 0.8% Finally, on January 1, 2015, Kerry gave Suzanne $2800 to completely repay the loan. At the same time, Suzanne closed her account at Harlow Savings and Loan and withdrew the money in the account. What is Suzanne's dollar-weighted rate of return in this financial agreement, assurring simple interest for the rate of return? (Round your answer to four places after the decimal) Answer = %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Suzanne and Kerry entered into a financial agreement. On January 1, 2014, Suzanne gave $8400 to Kerry. On April 1, 2014, Kerry repaid $2800 to Suzanne, On July 1, 2014, Kerry repaid $3360 to Suzanne, and Suzanne immediately place half of this payment into an account at Harlow Savings and Loan which eams at effective monthly compound interest rate of 0.8% Finally, on January 1, 2015, Kerry gave Suzanne $2800 to completely repay the loan. At the same time, Suzanne closed her account at Harlow Savings and Loan and withdrew the money in the account. What is Suzanne's dollar-weighted rate of return in this financial agreement, assurring simple interest for the rate of return? (Round your answer to four places after the decimal) Answer = %
Transcribed Image Text:Suzanne and Kerry entered into a financial agreement. On January 1, 2014, Suzanne gave $8400 to Kerry.
On April 1, 2014, Kerry repaid $2800 to Suzanne.
On July 1, 2014, Kerry repaid S3360 to Suzanne, and Suzanne immediately place half of this payment into an
account at Harlow Savings and Loan which earns at effective monthly compound interest rate of 0.8%
Finally, on January 1, 2015, Kerry gave Suzanne $2800 to completely repay the loan. At the same time,
Suzanne closed her account at Harlow Savings and Loan and withdrew the money in the account.
What is Suzanne's dollar-weighted rate of return in this financial agreement, assuming simple interest for
the rate of return? (Round your answer to four places after the decimal)
Answer = %
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