The effective annual interest rate was equal to the same


Initially, $80,000 is put into an investment account. Three months later, $7,000 is withdrawn. Two years after the initial investment, the account is worth $83313.70. Assuming a dollar-weighted method for the first year, and a time-weighted method for the second year, the effective annual interest rate was equal to the same value each year. What is that value?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: The effective annual interest rate was equal to the same
Reference No:- TGS02813324

Expected delivery within 24 Hours