The following deposits were made into a balanced mutual fund in 2015. The number of days is the length of time each deposit earned interest:
$30,000 on deposit for 300 days.
$10,000 on deposit for 257 days.
$25,000 on deposit for 179 days.
$15,000 on deposit for 143 days
$20,000 on deposit for 107 days
These deposits totaling $100,000 were worth $112,500 on Dec,31, 2015. What was the overall yield on this mutual fund for 2015?. Thank you for any help.
I have assumed that the interested is calculated and added daily.
I have let R = 1+ the daily interest rate.
\(112,500=30000R^{300}+10000R^{257}+25000R^{179}+15000R^{143}+20000R^{107}\\ 11.25=3R^{300}+1R^{257}+2.5R^{179}+1.5R^{143}+2R^{107}\\ \)
Now I have no idea how to do this so I entered it into Wolfram|Alpha
http://www.wolframalpha.com/input/?i=11.25%3D3*R%5E300%2BR%5E257%2B2.5*R%5E179%2B1.5*R%5E143%2B2*R%5E107
R = 1.00057
The daily interest rate is 0.00057 = 0.057%
You could say that the nominal yearly rate is 0.057*365.25 = 20.81925 %
But the acurate yearly rate - if the interest was calculated and added year is
1+yearly rate = 1.00057^365.25 = 1.2313771628891921 = approx 23.14%