This actuarial science

Problem 5 - Dollar-weighted and Time-weighted rate of returns An investment account has a value of $3000 on 1/1/2014. On 4/1/2014, the value of the account has increased to $3090 and a deposit of $700 is made. On 10/1/2014, the value of the account balance is $3968 and $800 is withdrawn. On 1/1/2015, the investment account is worth $3285. a) Compute the yield rate using the time-weighted method. iT= % b) Compute the yield rate using the dollar-weighted method. iD=

Problem 6 - Dollar-weighted and Time-weighted rate of returns An investment account has a value of $300 on 1/1/2014. On 5/1/2014, the value of the account has increased to $305 and a deposit of $130 is made. On 10/1/2014, the value of the account balance is $444 and X is withdrawn. On 1/1/2015, the investment account is worth $362. Compute the amount of withdrawal if the time-weighted rate of return is equal to 6.12%. X=

Problem 7 - Dollar-weighted and Time-weighted rate of returns An investment account has a value of $2000 on 1/1/2014. On 7/1/2014, the value of the account has increased to $2022 and a deposit of X is made. On 10/1/2014, the value of the account balance is $3237 and $620 is withdrawn. On 1/1/2015, the investment account is worth $2688. Compute the time-weighted rate of return if the dollar-weighted rate of return is equal to 7.39%. iT=

Problem 9 - Dollar-weighted and Time-weighted rate of returns For an investment account, you are given the following information during the first 6 months of the year.

Date	Fund Value Before Activity	Deposit
January 1	60
March 15	75	30
May 1	65	25
June 30	121

a) Use the time-weighted method to calculate the yield rate earned by this investment during the first 6 months. j= % b) Use your answer to part a) to compute the equivalent annual effective interest rate earned by this investment. i=