Dollar-weighted rate of return in this financial agreement

Assignment Help Financial Management

Reference no: EM131989617

Suzanne and Kerry entered into a financial agreement. On January 1, 2014, Suzanne gave $9000 to Kerry. On April 1, 2014, Kerry repaid $3000 to Suzanne. On July 1, 2014, Kerry repaid $3600 to Suzanne, and Suzanne immediately place half of this payment into an account at Harlow Savings and Loan which earns at effective monthly compound interest rate of 0.5% Finally, on January 1, 2015, Kerry gave Suzanne $3000 to completely repay the loan. At the same time, Suzanne closed her account at Harlow Savings and Loan and withdrew the money in the account. What is Suzanne's dollar-weighted rate of return in this financial agreement, assuming simple interest for the rate of return? (Round your answer to four places after the decimal)

Answer = % (3 decimal place)

Reference no: EM131989617

Questions Cloud

Considered two contracts to renovate its facilities : Meals on Wheels is considered two contracts to renovate its facilities. which option is the better deal for Meals on Wheels? Why?

What is the present value of the annuity due : A 16-year annuity due pays $800 per year and interest rates are 12%, what's the present value of the annuity due?

Indication of firm risk with its capital structure : Which of the following is an indication of a firm's risk with its capital structure?

What is the intrinsic value of stock : Caskey Inc. is experiencing a period of growth. what is the intrinsic value of the stock?

Dollar-weighted rate of return in this financial agreement : What is Suzanne's dollar-weighted rate of return in this financial agreement, assuming simple interest for the rate of return?

What will the earnings per share be after the repurchase : What will the earnings per share be after the repurchase if the economy booms?

What is the unlevered cost of capital : The debt-equity ratio is .50 and the tax rate is 21 percent. What is the unlevered cost of capital?

The financial planning process comes before monitoring : Which step in the financial planning process comes before monitoring?

Bad investment incorporated has promised investors : Bad Investment Incorporated has “promised” investors to pay a $4.00 per year dividend in perpetuity.

User Account

All Pages