Revision as of 10:14, 22 November 2023 by Admin (Created page with "Alex earned an investment income of $13,000 during 1999. The beginning and ending balances were $114,000 and $136,000. A deposit was made at time k during the year. No other deposits or withdrawals were made. The fund made 11% in 1999 using the dollar-weighted method. Determine k. <ul class="mw-excansopts"><li>August 1</li><li>May 1</li><li>June 1</li><li>July 1</li><li>March 1</li></ul> {{cite web |url=https://digitalcommons.calpoly.edu/cgi/viewcontent.cgi?article=10...")
ABy Admin
Nov 22'23
Exercise
Alex earned an investment income of $13,000 during 1999. The beginning and ending balances were $114,000 and $136,000. A deposit was made at time k during the year. No other deposits or withdrawals were made. The fund made 11% in 1999 using the dollar-weighted method.
Determine k.
- August 1
- May 1
- June 1
- July 1
- March 1
Hardiek, Aaron (June 2010). "Study Questions for Actuarial Exam 2/FM". digitalcommons.calpoly.edu. Retrieved November 20, 2023.
ABy Admin
Nov 22'23
Solution: D
Beginning= 114,000 End=136,000
Investment Income= 13,000 i= .11
Total Increase =22,000
Deposit= Total Income- Investment Income= 9,000
Dollar-Weighted:
[[math]]
\begin{aligned}
114,000(1.11) + 9000(1+.11(1-k))= 136,000 \\
-10,000*.11k=-530 \\
k= .4818≈.5 \\
\end{aligned}
[[/math]]
Hardiek, Aaron (June 2010). "Study Questions for Actuarial Exam 2/FM". digitalcommons.calpoly.edu. Retrieved November 20, 2023.