Salvatore will contribute $640 to a mutual fund at the beginning of each calendar quarter.a. What will be the value of his mutual fund after 6 1/2 years if the fund earns 9% compounded annually? (Do not round intermediatecalculations and round your final answer to 2 decimal places.)Value of mutual fund$b. How much of this amount represents investment earnings? (Do not round intermediate calculations and round your final answerto 2 decimal places.)Investment earnings$

Value of mutual fund increases over the period of time due to increase in the prices of stocks over…

Answered: alvatore will contribute $640 to a…

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter15: Mutual And Exchange Traded Funds

Section: Chapter Questions

Problem 3LTAI

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If 90,000 is invested in a fund on December 31, 2019, and 5 equal annual withdrawals of 23,138.32 are made starting on December 31, 2020, that will deplete the fund, what is the interest rate being earned if interest is compounded annually?
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