As the Fund Manager for Bank of Trinidad and Tobago Limited, you are to advise the following two (2) clients based on their respective financial situations. Your best friend has asked to assist him in making the best investment out of the following options. Which would you advise him to choose and why, considering the risks are the same for all the options. Option 1: $12,000 in 5 years at 6 percent interest. Option 2: $15,000 in 2 years at 9 percent interest. Option 3: $15,000 today. No strings attached. Option4: $5,000 each year for 2 years at 7 percent interest compounded semiannually.

Q: Please provide detailed explanation: #5 Sarah Mix decides to invest $500 per month in three funds,…

A: Mutual fund is like an investment in various types of securities. When an investor purchases a…

Q: A client has a $5 million portfolio and invests 5% of it in the money market fund projected to earn…

A: Future value is the accumulated value of a sum of money at a future date. Future value is calculated…

Q: A person wants to invest $12,000 for 2 years and is considering two different investments The first…

A:

Q: You are considering an investment in a mutual fund with a 4% load and an expense ratio of .5%. You…

A: a) Let ‘r’ be the annual rate of return in the mutual fund. With an expense ratio of 0.5% and a load…

Q: Investor Dan has $740,000 to invest in a CD and a mutual fund.  The CD yields 3.6% and the mutual…

A: Profit maximization is the process of finding out the maximum returns for an investment based on the…

Q: ) Betty Kay has a contract in which she will receive the following payment for the next 5 year:…

A: Present value of cash outflows needs to be compared with the present value of cash inflows. If the…

Q: You have OMR 12,000 in cash. You can deposit it today in a mutual fund earning 8.2 percent…

A: We have to calculate future value at end of 10 years of both options and find which give more value.

Q: ou decide to contribute to a mutual fund that averages 3.6% return per year. If you contribute $600…

A: Formula: Future value of annuity = Annuity amount x [ ( 1 + r )n - 1 ] / r N = Number of years R =…

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: Five years​ ago, you invested in the Future Investco Mutual Fund by purchasing 1,100shares of the…

A: Solution:- Compound rate of return means the annual rate of return earned. We know, amount at…

Q: ) Your best friend has asked to assist him in making the best investment out of the following…

A: to see whether the project is attractive or not one needs to the present value of the particular…

Q: you are planning to invest in high risk mutual fund of bank F which will give you 5% interest…

A: Present value = Future value/(1 + i)n Future value = 2,000,000 i = 5%/12 = 0.41667% = 0.0041667 n =…

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: 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: Your best friend has asked to assist him in making the best investment out of the following options.…

A: The time value of money implies that the cash in hand at present has a higher value than the cash…

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

A: Future value of the present amount With present value (PV), interest rate (i) and period (n), the…

Q: A pensioner is expecting a lump sum of GHC 200,000 when she goes on pension next year and is…

A: The evaluations of the investment funds and the securities in an important technique of portfolio…

Q: The following tutorial question serves as practice questions on TVM and Bond Valuation (Answer Both…

A: A concept through which it is studied that the current worth of money is higher than its future…

Q: The following tutorial question serves as practice questions on TVM and Bond Valuation (Answer Both…

A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…

Q: Ridzuan is a finance student at a college. Recently, he has won RM 15,000 from a competition. He…

A: Data given: Amount invested= RM 15,000 Investment Option:: Option A: Invest in a fund that pays 8%…

Q: Carlo Elise is adapting the cost averaging in investment. He decided to invest in a mutual fund for…

A: The cost-averaging method means investing the same amount of money in any asset or security at…

Q: 4. As the Fund Manager for Bank of Trinidad and Tobago Limited, you are to advise the following two…

A: Present value(PV) is current value of an amount which is calculated by discounting same amount with…

Q: 1. As the Fund Manager for Bank of Trinidad and Tobago Limited, you are to advise this client based…

A: Time value of money means that the worth of money in present is always more than that in 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: 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: Your financial advisor from Bluerock recommends you to invest in one of the plan. You want to…

A: The question is based on the concept of Financial Management. Future value can be calculated by…

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: 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: Investor Matt has $659,000 to invest in a CD and a mutual Fund. The CD yields 6.7% and the mutual…

A: As per the information provided : Amount to be invested by Investor Matt - $659,000 CD yield - 6.7%…

Q: Betty Kay has a contract in which she will receive the following payment for the next 5 year:…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Siti Khadijah invested RM30 000 in Sudir Mutual Fund and Kajol Mutual Fund.Sudir Mutual is giving a…

A: Weight of Investment: The proportion of an investment portfolio that a given holding or kind of…

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: Year Deposit ($) 4,000 3,500 2,500 2,000 1,700 $13,700 12345

A: Growth each year = 11% Future Value factor for growth = (1+11%)^years of investment for 1st deposit…

Q: As the Fund Manager for Bank of Trinidad and Tobago Limited, you are to advise the following two (2)…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

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

A: Mutual fund is simply a scheme whose bussiness is to take money from the retail investors and make a…

Q: You are on employee that earn Php. 20,000 per month. Assuming that you want to invest half of the…

A: Monthly earning = Php. 20,000 Monthly investment (P) = 20,000/2 = Php. 10,000 Interest rate = 6%…

Q: Suppose that at the beginning of Year 1 you invested $10,000 in the Stivers mutual fund and $5,000…

A: When all the sum of the observations is divided by its observations is referred to as Mean or…

Q: Investor Matt has $661,000 to invest in a CD and a mutual fund. The CD yields 7.3% and the mutual…

A: Amount to be invested is $661,000 CD yields 7.3% Average yield of mutual fund is 7.7% Minimum…

Q: You are considering an investment in a mutual fund with a 4% load and an expense ratio of .5%. You…

A: Given information: Mutual fund investment with- 4% load 0.5% expense ratio  Bank CD with 6 %…

Q: A pension fund manager decides to invest a total of at most $30 million in US treausry bonds paying…

A: Profit or interest maximization is the process of finding out the maximum profit while keeping…

Q: Consider that Adjovi Hevi placed GHS 12,525 in Mutual Fund for the next 15 years. She is to earn a…

A: The mutual fund is an investment avenue that pools funds from individual investors and invests such…

Q: You have OMR 12,000 in cash. You can deposit it today in a mutual fund earning 8.2 percent…

A: When the amount is invested with some interest rate over the period of time to get amount…