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Business, 25.11.2021 07:00 ravensenpai423

On Mike's 1st birthday, a savings account is opened for him containing $10,000. On his 5th birthday, the account has grown to $13,500 and $1,000 is added. On his 13th birthday, the account has grown to $17,000 and $2,000 is added. On his 16th birthday, he withdraws $5,000 to buy a car, leaving a balance of $15,000. On his 18th birthday, his account contains $16,500, which he will use for college. No other deposits or withdrawals are made. Calculate the time-weighted rate of return over the seventeen-year period. (A) Less than 0.05.
(B) At least 0.05, but less than 0.30.
(C) At least 0.30, but less than 0.55.
(D) At least 0.55, but less than 0.80.
(E) At least 0.80.

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