Annual effective rate earned on the investment portfolio

Assignment Help Finance Basics
Reference no: EM13657957

1. A company invests $1,000,000 at the beginning of the year. It adds another $250,000 at the end of the first quarter, withdraws $350,000 at the end of the second quarter, adds $145,000 at the end of the third quarter, and withdraws $450,000 of the remaining funds at the end of the year. It earns $20,000 of interest in the first quarter, $17,000 in the second quarter, $12,000 in the third quarter, and 29,000 in the fourth quarter.
a. What is the annual effective rate earned on the investment portfolio
b. What rate of return would have been calculated if one only looked at the ending portfolio value as compared with the beginning $1,000,000 investment?

Reference no: EM13657957

Questions Cloud

The single slit diffraction pattern : The single slit diffraction pattern shown below was made with light with λ = 570 nm. The screen was 2.6 m from the slit. If the slit had a width 8 mm, what is the width w of the central maximum in cm?
Theory of epidemiology of population change : Explore the Global Burden of Disease website; try your hand at developing visualizations to understand burden of disease globally and in Sierra Leone
How much do larry and stacy need to contribute : a. How much do Larry and Stacy need to contribute to the account at the end of each of the next 20 years in order to accomplish their goals?
Source of sound waves of frequency : A source of sound waves of frequency 1.2 kHz is traveling during the air at 0.25times the speed of sound.What is the frequency of the sound received by a stationary observer if the source moves toward her?
Annual effective rate earned on the investment portfolio : What is the annual effective rate earned on the investment portfolio
Electrons speed when it reaches the positive plate : The electric field strength is 2.00×104 N/C inside a parallel-plate capacitor by 1.50 mm spacing. An electron is released from rest at the negative plate. What is the electron’s speed when it reaches the positive plate?
Find a great deal for your house : The bank agrees to give you a 5 year loan where you only pay $100 a month, and at 0% interest. What can go wrong - However, when 5 years pass you realize you agreed to a balloon mortgage, and all the rest of that loan is due right now.
Discover the power dissipated by the string : A string of 18 identical holiday tree lights is connected in series to a 190V source. The string dissipates 62.0 W. One of the bulbs burns out. The lamp has a wire that shorts out the lamp filament when it burns out. This drops the resistance of the ..
What analysis is offered by spss modeller : What analysis is offered by SPSS Modeller which is not available in standard spreadsheet applications e.g. Exce l?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd