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) Bright Future Investment Fund has a balance of $1,205,000 on January 1. On May 1, the balance is $1,230,000. Immediately after this balance is noted, $800,000 is added to the fund. If there are no further contributions to the fund for the year and the time-weighted annual yield for the fund is 16%, what is the fund balance at the end of the year

Respuesta :

Tundexi

Answer:

$2,306,938.21

Explanation:

Let the fund balance at the end of the year be X

1.16 = ($1230000 / $1205000) + (X / $2030000)

1.16 = 1.02075 + (X / $2030000)

1.16 / 1.02075 = (X / $2030000)  

1.13642 = (X / $2030000)  

X = 1.13642 * $2030000

X = $2,306,938.21  

Hence, the fund balance at the end of the year is $2,306,938.21

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