An investment manager has a fund of 100,000 at the beginning of year 2006. On February 1 the fund drops to 98,000 and a withdrawal of 10,000 is made. On September 1 the fund balance is 100,000 and a deposit of 10,000 is made. At year end the account balance is 105,000. Find the time weighted rate of return and the dollar weighted rate of return.

Answer for the question:

An investment manager has a fund of 100,000 at the beginning of year 2006. On February 1 the fund drops to 98,000 and a withdrawal of 10,000 is made. On September 1 the fund balance is 100,000 and a deposit of 10,000 is made. At year end the account balance is 105,000. Find the time weighted rate of return and the dollar weighted rate of return.

Is given in the attachment.

Explanation:

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%