Hello. I need help in some of the problems in Stephen Kellison's Theory of Interest, 2nd Edition.

Here's the first problem:

"Deposits of $1000 are made into an investment fund at time 0 and at time 1. The fund balance is $1200 at time 1 and $2200 at time 2. Compute the annual effective yield rate which is equivalent to that produced by a time-weighted calculation."

The concept of time-weighted is quite vague for me to understand... and I am thinking if this only applies for any time t, 0 <= t <= 1. So, when I use the formula stated in page 147of the book, I eventually get the yield rate to be 20%, and not 9.54%. What must be done here?

The other problem that I am having hard time with is no. 25 of page 163. The problem asks to find the accumulated value of the annuity-due at time 5 assuming the first payment is made in calendar year z + 3 using the given table in the book. The table is included as an attached file. My solution is 1.092 + (1.092)(1.091) + (1.092)(1.091)(1.091) + (1.092)(1.091)(1.091)(1.09) + (1.092)(1.091)(1.091)(1.09)(1.09) but unfortunately, something seems to be incorrect. The answer given in the book is 6.5708.

Here's the first problem:

"Deposits of $1000 are made into an investment fund at time 0 and at time 1. The fund balance is $1200 at time 1 and $2200 at time 2. Compute the annual effective yield rate which is equivalent to that produced by a time-weighted calculation."

The concept of time-weighted is quite vague for me to understand... and I am thinking if this only applies for any time t, 0 <= t <= 1. So, when I use the formula stated in page 147of the book, I eventually get the yield rate to be 20%, and not 9.54%. What must be done here?

The other problem that I am having hard time with is no. 25 of page 163. The problem asks to find the accumulated value of the annuity-due at time 5 assuming the first payment is made in calendar year z + 3 using the given table in the book. The table is included as an attached file. My solution is 1.092 + (1.092)(1.091) + (1.092)(1.091)(1.091) + (1.092)(1.091)(1.091)(1.09) + (1.092)(1.091)(1.091)(1.09)(1.09) but unfortunately, something seems to be incorrect. The answer given in the book is 6.5708.

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