# Mock Exam question help

First of all let me vent. FML FML FML, 7 days left and I basically took the last two days off of studying due to the holiday. Nevertheless, may somebody help me with question 39 on the official Mock exam morning session. The question had to do with aggregate income.

Thanks

You plug in the variables and solve for Y. I made the mistake of plugging in .03 instead of 3 for r. Once you get an answer, you do it all over again but instead change G to 2000 and take the difference of the 2 final answers.

The last line was interesting though: “Or more simply, ∆G ÷ (1 – c) = 1,000/(1 – 0.86) = 7,143.” If you can follow the math to get to .86, this would be the easier route.

An investor’s transactions in a mutual fund and the fund’s returns over a four-year period are provided in the table below: Year 1 2 3 4 New investment at the beginning of the year \$2,500 \$1,500 \$1,000 \$0 Investment return for the year –20% 65% –25% 10% Withdrawal by investor at the end of the year \$0 –\$500 –\$500 \$0 Based on these data, the money-weighted return (or internal rate of return) for the investor is closest to: A. 2.15%. B. 3.96%. C. 7.50%.

how to solve ?