Calculate effective annual yield rate

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On Becca’s 1st birthday, a savings account was opened for her containing $10,000. By her 5th birthday, the account had grown to $13,500 and $1000 was added. By her 13th birthday the account had grown to $17,000 and $2000 was added. On her 16th birthday, she withdrew $5,000 to buy a car, leaving a balance of $15,000. On her 18th birthday, the account contained $16,500 which she will use for college. No other deposits or withdrawals were made. Use the time-weighted method to calculate the effective annual yield rate over the seventeen-year period.

Reference no: EM13877801

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