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Bright Future Investment Fund has a balance of $1, 205 on January 1. On May 1, the balance is $1, 230. Immediately after this balance is noted, $800 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 11.1%, what is the fund balance at the end of the year

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saqib097

Answer:

The fund balance at the end of the year is $22,075.

Explanation:

Let X denote the end-of-year balance. During the year, the balance grows as follows

1,205 → 1,230+ ($800) = 2,030

The time-weighted yield rate for the one yearperiod is 11.1%

11.1 = [tex]\frac{1230}{1205}[/tex] * [tex]\frac{X}{2030}[/tex]

1230x = 27152265

x =  [tex]\frac{27152265}{1230}[/tex]

x = $22,075