Determine annual effective rate earned on investments

Reference no: EM1363910

A Firm 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.

1. What is the annual effective rate earned on the investments portfolio? (show work)

2. 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: EM1363910

Questions Cloud

Explain what does it mean to be a dynamic manager : Dynamic Managers - How to we balance these to opposing facts, and what does it mean to be a dynamic manager?

Structural issues-differentiation and integration : Discuss the twin structural issues: differentiation and integration. Coordination must be achieved at both the micro- and the macro-levels. Discuss how this relates to the following:

Depreciation-impairments-depletion : You are an accounting tutor. One of your students is confused about impairment because the student has learned earlier that all assets are recorded at their historical cost. The student has the following list of questions for you:

Write program to perform arithmetic operations on fractions : Write a program that lets the user perform arithmetic operations on fractions. Fractions are of the form a/b, where a and b are integers and b is not equal to 0.

Determine annual effective rate earned on investments : A Corporation invests $1,000,000 at the beginning of the year. It adds another $250,000 at the end of 1st quarter, withdraws $350,000 at the end of second quarter,

Define the magnitude of the average force : find out the z-component of the block's momentum after the kick.

Design algorithm to produce list of customers : Design an algorithm to produce a list of customers from the Glad Rags Clothing Company's customer master file. Each record on the customer master file contains the customer's number.

Portfolio management presentation : What are the benefits of portfolio management and How is it being applied - how many organizations are applying the techniques successfully?

Reviewing and analyzing the income statement : Determine which type of stock would an investor purchase if he or she were primarily interested in a safe investment and what do stockholders look for when reviewing and analyzing the income statement.

User Account

All Pages