Please solve 2. Suppose you invest $1,800 in a mutual fund today and $2,000 in one year. If the fundannually, how much will you have in two years? How much will you have in 6 years if you makeno further deposits?рays5%

Future Value is the value of current investments at a certain future date at the assumed…

2. Suppose you invest $1,800 in a mutual fund today and $2,000 in one year. If the fund pays 5% annually, how much will you have in two years? How much will you have in 6 years if you make no further deposits?

2. Suppose you invest $1,800 in a mutual fund today and $2,000 in one year. If the fund pays 5% annually, how much will you have in two years? How much will you have in 6 years if you make no further deposits?

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter2: Descriptive Statistics

Section: Chapter Questions

Problem 17P: Suppose that you initially invested 10,000 in the Stivers mutual fund and 5,000 in the Trippi mutual...

See similar textbooks

Related questions

Q: You expect to receive a payout from a trust fund in 5 years. The payout will be for $12,200. You…

A: INTRODUCTION Present value of a cash flow needs to be multiplied by the CVF factor in order to…

Q: Suppose you invest $2000 into a mutual fund that is expected to earn a rate of return of 11%. The…

A: Investment (PV) = $2000 Rate of return (r) = 11%

Q: You find a mutual fund that offers approximately 6% APR compounded monthly. You will invest enough…

A: Annuity means finite no. of payments which are same in size and made in equal intervals. A person…

Q: Suppose you have an opportunity to invest in a fund that pays 12% interest compounded annually.…

A: Given: workings:

Q: 3. You are considering to invest in a mutual fund with a 4% load and an expense ratio of 0.5%.…

A: The investment in a mutual fund portfolio will be considered as better or fruitful, if the returns…

Q: May I ask for an explanation and solution to the question for a better understanding. Thank you! 3.…

A: The compound value technique is used to find the future value of the present value which will be…

Q: A no-load (commission-free) mutual fund has grown at a rate of 11% compounded annually since its…

A: Future Value of Annuity: It represents the future worth of current periodic annuity payments. It is…

Q: st inherited some money, and a broker offers to sell you an annuity that pays $16,800 at the end of…

A: Value of annuity is present value of all year end money received over the period of life.

Q: Larry James is planning to invest $25,400 today in a mutual fund that will provide a return of 0.10…

A: We need to find the future value of investment of Mr.Larry James. Future value is the amount reccive…

Q: A pension fund manager decides to invest a total of at most $35 million in U.S. Treasury bonds…

A: Total amount for investment is $35million Interest rate on US Treasury bond is 3% Interest rate on…

Q: Suppose you invest $500 in a mutual fund today and $600 in one year. If the fund pays 9% annually,…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: You have been hired to run a pension fund for TelDet Inc, a small manufacturing firm. The firm…

A: Calculate the value in 10 years as follows: a. value in 10 years = Future value of 5 year cash…

Q: A mutual fund pays 7% compounded monthly. How much should I invest now so that 3 years from now I…

A: Given information: Amount in the account is $3,900 Interest rate is 7% Number of years is 3

Q: You have invested P100,000 in a mutual fund that promises to pay 8% each year. You will keep this…

A: Mutual funds are the investment vehicles where a manager collects capital from multiple investors…

Q: You plan to open a retirement account. Your employer will match 50% of your deposits up to a limit…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: 3. Your client has a 2-year old child whose college education they plan to fund when the child turns…

A: First calculate the lump sum amount needed at the start of college. This lump sum can be calculated…

Q: How much must you invest at 12% interest, compounding quarterly, in order to see your investment…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: You save $800 a year into a 401(k) account that you invest in a mutual fund earning 9% per year.…

A: Given, Amount saved every year is $800 Rate is 9% Number of years is 25.

Q: You deposit $50,000 into a fund that pays 5% per year compounded annually. You plan to make the…

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: You put $6,500 into a Roth IRA and invest everything in a corporate bond fund. The fund has an…

A: n=20 r=8.5-1.5=7/100=0.07 Present value=6500

Q: You want to go to Europe 5 years from now, and you can save $3,800 per year, beginning one year from…

A: Future value of ordinary annuity is calculated when regular payments are made at the end of each…

Q: Now let’s pretend that we buy an annuity at the age of 70 with how much money we have in total from…

A: Annuities are regular stream of cash flows as payments which occur for a defined period and at a…

Q: You plan to invest in bonds that pay 6.0%, compounded annually. If you invest $10,000 today, how…

A: Hi! Thank you for the question, As per the Honor Code, we are allowed to answer one question in case…

Q: You put $6,500 into a Roth IRA and invest everything in a corporate bond fund. The fund has an…

A: An investment is an asset or item purchased with the intention of generating income or appreciation.…

Q: 1. If you deposit $10,000 in a bank account that pays 10% interest annually, how much will be in…

A: Present value is the current value of a future amount that is to be received or paid out.Future…

Q: You have just invested a one-time amount of $5,000 in a stock-based mutual fund. This fund should…

A: Given Information, Amount Invested = $5,000 Interest rate =9% Time Period =35 years To Find:…

Q: You want to go to grad school 3 years from now, and you can save $5,000 per year for consecutive…

A: Yeas = 3 Each Year deposit = 5000 Return rate = 9%

Q: oday, you invest a lump sum amount in an equity fund that provides an 12% annual return. You would…

A: The question is based on the concept of calculation of present value with compounding effect of…

Q: 1. If you invest P8,000 at 6.6% interest, compounding monthly, how much will you have in 3½ years?

A: Principal amount invested now will become certain amount after certain period of time at specific…

Q: You plan on saving $5,200 this year, nothing next year, and $7,500 the following year. You will…

A: Future value of a present value is the value of that amount after taking into account the time value…

Q: 3. Your client has a 2-year old child whose college education they plan to fund when the child turns…

A: Calculation of Lump Sum Payment and Monthly Payments:The lump sum payment is $746,005.43 and monthly…

Q: planning to invest $25,000 today in a mutual fund that will provide a return of 8 percent each year.…

A: Answer 5.1: Future value can be calculated using the following formula: Future value = present…

Q: You want to go to Europe 5 years from now, and you can save $3,300 per year, beginning one year from…

A: Hi, since you have posted multiple question, I will answer the first. Please re-post the unanswered…

Q: You save $400 a year into a 401(k) account that you invest in a mutual fund earning 10% per year.…

A: Amount saved per year is $400 Interest rate is 10% per year Time period is 30 years. To Find:…

Q: You want to go to Europe 5 years from now, and you can save $3,100 per year, beginning one year from…

A: Annual deposit (P) = 3100 Interest rate (r) = 15.87% Number of annual payments (n) = 5

Q: as the Fund manager for bank of Trinidad and Tobago Limited, you are to advise the following two…

A: 2,a) Given: The financial situations of the bank Trinidad and Tobacco are given.

Q: If you invest P5,000 in a mutual fund extending a total annual return of 8% and you re-invest the…

A: Investment = 5000 Annual Return = 8% Time Period = 5 years

Q: 3. If you invest P5,000 in a mutual fund extending a total annual return of 8% and you re-invest the…

A: Investment = 5000 Return % = 8% Time Period = 5 years

Q: Suppose that you have an opportunity to invest in a fund that pays 12% interest compounded annually.…

A: The investment is refer as engaging funds with an financial institution or bank at specific rate of…

Q: Suppose you are committed to owning a $343,000 Ferrari. If you believe your mutual fund can achieve…

A: Discounting is a technique which is used to compute the present value (PV) of future amounts by…

Q: If you invest P5,000 in a mutual fund with a total annual return (interest rate) of 8% and you…

A: Amount invested(PV) is P 5,000 Interest rate(rate) is 8% Time period is 5 year. To Find: Value of…

Q: Question 1 Abu-Zoher invest 25,000S in a stock-based mutual fund. This fund should earn (on average)…

A: Principal amount invested now will become certain amount after certain period of time at specific…

Q: Select the correct answer. You invest in a fund and it is expected to generate S3,000 per year for…

A: The following information has been provided in the question: Future value = $3000 per year Time = 5…

Q: At the beginning of each year, you deposit the following into a growthmutual fund that earns 6…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

Please solve

2. Suppose you invest $1,800 in a mutual fund today and $2,000 in one year. If the fund
annually, how much will you have in two years? How much will you have in 6 years if you make
no further deposits?
рays
5%

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Suppose that you initially invested 10,000 in the Stivers mutual fund and 5,000 in the Trippi mutual fund. The value of each investment at the end of each subsequent year is provided in the table: Which of the two mutual funds performed better over this time period?
You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
3. If you invest P5,000 in a mutual fund with a total annual return (interest rate) of 8% and you re-invest the proceeds each year, what will be the value of your investment after five years? a.P3,402.92b.P6,597.08c.P7,000.00d.P7,346.64
If you invest P5,000 in a mutual fund extending a total annual return of 8% and you re-invest the proceeds each year, what will be the value of your investment after five years? a. P3,402.92 b. P7,346.64 c. P4,629.63 d. P5,400.00
Suppose you invest $8,000 in a mutual fund in one year and $9,500 in two years. If the fund pays 7% annual interest, how much will you have in three years? How much will you have in 7 years if you make no further deposits?
1. You've invested $1,000 in a mutual fund with a 5% front-end load, an expense ratio of 1% and a back-end load of 5%. Expenses are paid at the end of each year. The fund produces an annual return of 8% before fees. a) What is your annual return after fees if you hold the fund for 3 years? b) What is your annual return after fees if you hold the fund for 30 years?
You decide to contribute to a mutual fund that averages 3.6% return per year. If you contribute $600 quarterly. Round all answers to the nearest cent as needed. a) How much will be in the account after 20 years? $ b) How much of this money did you deposit? $ c) How much of this money is interest earned? $ Submit Question Question 3
(Use Calulator or Formula Approach) Suppose you invest $500 in a mutual fund today and $600 in one year. If the fund pays 9% annually, how much will have you in two years? How much will you have in 5 years if you make no further deposits?
You deposit the following at the end of each year into a growth mutualfund that earns 11 percent per year:Year Deposit ($)1 4,0002 3,5003 2,5004 2,0005 1,700 ======== $13,700a. How much should the fund be worth at the end of 5 years?b. How much interest have you earned in total?
#17 You deposit the following at the end of each year into a growth mutual fund that earns 11 percent per year: How much should the fund be worth at the end of 5 years? How much interest have you earned in total? Year Deposit ($) 1 4,000 2 3,500 3 2,500 4 2,000 5 1,700 $13,700
you have just invested a one time amount of $4,000 in a stock based mutual fund. this fund should earn (on average) 11% compounded anually over a long perid of time. how much will be your investment be worth in 33 years?
You have just invested a one -time amount of $4,000 in a stock -based mutual fund. This fund should earn (on average) 6% componded annually over a long period of time . How much will your investment be worth in 28 years?