1. Q Susan is a university student who was gifted a $3000 check upon graduating high school in June 2018. In January 2019, she decided to invest her money in a mutual fund earning an annual interest rate 69%, compounding quarterly. Assume the end-of-month convention. a. How much money did Susan loose by waiting until January 2019 to invest her money? b. If Eden made additional investments of $225 every quarter (starting at the end of March 2019), how much would the account be worth at the end of March 2022?

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter4: Time Value Of Money
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1. Q. Susan is a university student who was gifted a $3000 check upon graduating high
school in June 2018. In January 2019, she decided to invest her money in a mutual fund
earning an annual interest rate 6%, compounding quarterly. Assume the end-of-month
convention.
a. How much money did Susan loose by waiting until January 2019 to invest her
money?
b. If Eden made additional investments of $225 every quarter (starting at the end of
March 2019), how much would the account be worth at the end of March 2022?
Transcribed Image Text:1. Q. Susan is a university student who was gifted a $3000 check upon graduating high school in June 2018. In January 2019, she decided to invest her money in a mutual fund earning an annual interest rate 6%, compounding quarterly. Assume the end-of-month convention. a. How much money did Susan loose by waiting until January 2019 to invest her money? b. If Eden made additional investments of $225 every quarter (starting at the end of March 2019), how much would the account be worth at the end of March 2022?
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