On January 1, 1997, an investment account has a value of 100,000. On April 1, 1997, the
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On January 1, 1997, an investment account has a value of 100,000. On April 1, 1997, the value has increased to 103,000 and 8,000 are withdrawn. On January 1, 1999, the account has a value of 103,992. Assuming that a dollar-weighted method is used to calculate the 1997 rate of return and a time-weighted method is used to calculate the 1998 rate of return, the two annual rates of return are equal.
Calculate the account balance at the beginning of 1998.
Related Book For
Intermediate Accounting
ISBN: 978-1118300855
10th Canadian Edition Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy
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