Answered: 3. If you invest P5,000 in a mutual…

3. 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?

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 deposit the following at the end of each year into a growth mutual fund that earns 11 percent…

A: Working note:

Q: A person invests $50,000 in an investment that earns 6 percent. If $6,340 is withdrawn each year,…

A: Given: Present value = $50,000 Interest rate = 6% Amount = $6,340

Q: An investor has invested 75% of his assets in a money market fund. Generally, what is the investment…

A: Money market fund: It may be a sort of mutual fund that contributes as it were in profoundly liquid,…

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: Today, you invest P100,000 into a fund that pays 25% interest compounded annually. Three years…

A: Amount = Principal (1+(rate/100))^n Initially, we deposit P 100,000 in a fund with a 25% annual…

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: Suppose that you won $3,000,000/- in a lottery. You are given the option to take $100,000/- at the…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: An investor purchases segregated funds for a total cost of $60,000. After 4 years, the segregated…

A: Note: I am supposed to provide the solution of first question. Please repost the remaining question…

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

A: The future value of the cash flow is the future worth of a cash flow at a certain rate of interest…

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: 2. If $14,000 had been invested in the Fictious Fund on June 30, 1995, then on June 30, 2005 the…

A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…

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: f you invest $9,000 today, how much will you have: a. In 2 years at 9 percent? b. In 7 years at 12…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Larry James is planning to invest $25,500 today in a mutual fund that will provide a return of 0.08…

A: Future Worth is value of current amount at future point of time. It is computed by compounding that…

Q: 2. Suppose you invest $1,800 in a mutual fund today and $2,000 in one year. If the fund pays 5%…

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

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: You are an employee that earns 20,000 per month. Assuming that you want to invest half of the amount…

A: The future value of the investment can be found by using the compound amount formula. The same is as…

Q: You have just invested a one -time amount of $4,000 in a stock -based mutual fund. This fund should…

A: Investment = $ 4000 Annual return = 6% Investment period = 28 Years

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

A: As posted multiple independent questions we are answering only first question kindly repost the…

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: Computing the Future Value of a Single Amount Evans invested $100,000 today in a mutual fund…

A: The mathematical equation for the concept is:

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: Find the required value for each problem. Show the formula used and the counts for each problem. 1.…

A: Because you have psoted multiple questions, we will answer the first question only, for the…

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: million. The investor is planning on investing in this mutual fund for 20 years. calculate the…

A: Information Provided: Total assets = $508 million Expense ratio = 1.32% Fund charges (back end fee)…

Q: There are two investment options available for you. The first option requires you to invest 5,000$…

A: Compounding return is the capacity of investment to earn, on the previous earning along with the…

Q: Your objective is to have $25,650 in exactly 15 years. Today you invest $9,000 in a Schwab…

A: Amount after 7 years=$9000×(1+rate)n Where, Rate=6.1%N=7Amount=$9000×(1.061)7=18919.85

Q: Mary Stahley invested $6500 in a 24-month certificate of deposit (CD) that earned 8.5% annual simple…

A: Invested amount (P) = $ 6500 Period of investment in CD (t) = 24 Months = 2 Years Interest rate (r1)…

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: 2. If $14,000 had been invested in the Fictious Fund on June 30, 1995, then on June 30, 2005 the…

A: The present value of an investment refers to the worth of investment (or deposits) in today's term.…

Q: If $10,000 is invested in a certain business at the start of the year, the investor will receive…

A: Basic Details: 1. Amount Invested = $10000 2. Annual Cash Flow = $3000 3. Term = 4 Years 4. Interest…

Q: An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $300…

A: Formulas:

Q: You buy a mutual fund for $1,000. It annually distributes $60 for eight years, after which you sell…

A: Expected rate of return can be described as the total profit or loss on a particular investment over…

Q: 3. Your investment will pay $500 at the beginning of each of first 2 years, $100 at the end of…

A: Present value can be calculated by using this equation PV =FV/(1+r)n and FV =PV(1+r)n where PV…

Q: How much would a business have to invest in a high-growth fund to receive $13,000 every month for 7…

A: An annuity is the total of regular payments made over a period of time at a specific date, at a…

Q: You plan to invest $1,000 per year in a diversified investment fund that you expect will earn a rate…

A: Annual investment (P) = $ 1000 Annual interest rate (r) = 8% Number of annual deposits (n) = 10

Q: There are two investment options available for you. The first option requires you to invest 5,000$…

A: Option I Present Value = $5,000 Interest Rate = 7% Time period = 27 Years Note:- Investment invested…

Q: Assume you are told that by investing $100,000 now, you will receive $10,000 per year starting in…

A: Given information: Investment amount is $100,000 Annual cash flow amount is $10,000

Q: 4. Jacob invests $2500 a year in a mutual fund for 15 years. If the market value of the fund…

A: Annual investment (P) = $ 2500 Period (n) = 15 Years Interest rate (r) = 5%

Q: t. How much would be the total value of your investment at the maturity date?

A: Future value = Present value (1 + rate)^periods Future value = 1000 (1 + 0.035)^5 Future value =…

Question

3. 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? *

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Inputs

VIEW

Answer

VIEW

Step by step

Solved in 2 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 want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity
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?
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
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
1. If you invest P8,000 at 6.6% interest, compounding monthly, how much will you have in 3½ years? 2. How much must you invest at 12% interest, compounding quarterly, in order to see your investment grow to P5,000 in 27 months? 3. 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? 4. You deposited P1,000 in a savings account that pays 8% interest, compounded quarterly, planning to use it to finish your last year in college. Eighteen months later, you decide to go to Quezon City to become a call center agent rather than continue in school, so you close out your account. How much money will you receive? 5. What is the future value of a 5-year ordinary annuity with annual payments of P200, evaluated at a 7.5% semi-annual interest rate? 6. If P100 is placed in an account that requires a rate of return of 4%, compounded quarterly, what will it be worth…
If you invest P8,000 at 6.6% interest, compounding monthly, how much will you have in 3½ years? How much must you invest at 12% interest, compounding quarterly, in order to see your investment grow to P5,000 in 27 months? 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? You deposited P1,000 in a savings account that pays 8% interest, compounded quarterly, planning to use it to finish your last year in college. Eighteen months later, you decide to go to Quezon City to become a call center agent rather than continue in school, so you close out your account. How much money will you receive?
You plan to invest $20,000.00 today in an equity unit trust fund expected to pay an average return of 10% p.a., compounded annually. What is the value of your investment at the end of year 10
Larry James is planning to invest $25,500 today in a mutual fund that will provide a return of 0.08 each year. What will be the value of the investment in 10 years? Round to two decimal places.
2. How much must you invest at 12% interest, compounding quarterly, in order to see your investment grow to P5,000 in 27 months? 3. 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? 4. You deposited P1,000 in a savings account that pays 8% interest, compounded quarterly, planning to use it to finish your last year in college. Eighteen months later, you decide to go to Quezon City to become a call center agent rather than continue in school, so you close out your account. How much money will you receive?
Suppose you invest $50 each month (starting today) into a mutual fund. You reinvest distributions. At the end of 5 years, you sell all your shares and receive $3,485. Calculate your rate of return.
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?