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The following table gives the patter of investment year rates and portfolio rates over a...

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Accounting

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The following table gives the patter of investment year rates and portfolio rates over a given period of time. After three years of using investment year rates for a particular year the portfolio interest rate method is applicable on an investment. Investment Investment Year Rates Year Year 1 Year 2 Year 3 2005 9.00% 9.50% 9.75% 2006 9.70% 9.80% 9.30% 2007 8.40% 8.35% 7.52% 2008 7.25% 6.43% 5.15% 2009 4.25% 4.00% 2010 3.25% Portfolio Rates 10.20% 9.85% 8.25% Frank invests 1000 at the beginning of each calendar years 2005, 2006, 2007, and 2008. What is the average annual effective time-weighted rate of return for this four year period? Give your answer as a percentage rounded to four places (i.e. X.XXXX%). Do not include the percent sign in BlackBoard. Note: Treat this as a time weighted rate of return problem, but you are looking at the period length as 4 years. Once you get the 4-year rate of return, use that to get the equivalent annual effective interest rate

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