Deducting the management expenses of the fund

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Reference no: EM131886280

A large pension fund had a value of $1,000,000 at the beginning of the Year 2014. During the year the fund received contributions of $200,000 which were uniformly spread throughout the year. The fund made two benefit payments of $80,000 and $X on 1 June and 31 October, respectively. The interest income after deducting the management expenses of the fund were $100,000 for the whole year. If the fund had the balance of $1,150,000 at the end of the year, find the approximate yield rate of the fund in 2014.

Reference no: EM131886280

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