Question: Ben had $ 1 , 0 0 0 in his bank account at time 0 . He deposited $ 2 0 0 at time 0

Ben had $1,000 in his bank account at time 0. He deposited $200 at time 0.3. At time 1,
the account value is $1,300.
(a) Calculate the dollar-weighted rate earned by Ben.
(b) Calculate the exact yield rate.
(c) What if the deposit is $50 time 0.3. Compare the dollar-weighted and exact yield.

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