The market value of a fund and its cash flows at various dates in a calendar year are shown below: Date Value of fund before withdrawals Withdrawals1/1 $300,000 $0 m months after 1/1 315,000 15,000 2m months before 12/31 315,000 15,000 12/31 315,000 0The dollar-weighted rate of return for the year is 16.0%. In what range is m?
A)Less than 2.1
B)2.1 but less than 2.5
C)2.5 but less than 2.9
D)2.9 but less than 3.3
E)3.3 or more

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The Answer of The market value of a fund and its cash flows at various dates in a calendar year are shown below: Date Value of fund before withdrawals Withdrawals1/1 $300,000 $0 m months after 1/1 315,000 15,000 2m months before 12/31 315,000 15,000 12/31 315,000 0The dollar-weighted rate of return for the year is 16.0%. In what range is m?
A)Less than 2.1
B)2.1 but less than 2.5
C)2.5 but less than 2.9
D)2.9 but less than 3.3
E)3.3 or more

The Market Value of a Fund and Its Cash Flows