Dear Sir or Madam-
My question seeks to identify the annual percentage yield on a money market fund.
level of question: secondary
Joe is asking the question.
If you have $360,767 in a money market fund that has accumulated a total of $2,127 in year to date dividends (an eight month period January to August) what is the annual percentage yield.
PS-I'm a senior citizen who has checked the various calculators but is stymied.
Thanks in advance
I'm only guessing that your interest is compounded monthly - if not it won't make much difference given your figures. $P invested at a rate of r% compounded monthly for m months grows to $P(1+r/12)m. Your $360767 investment in 8 months has grown to $362894 which it would do at a paltry rate of about 0.885 of a percent rate per year (a bit less than 1 percent). In 1 year you will have $363973, a gain of about $3206; paltry return!