Bart is a college student who has never invested his funds. He has saved $1,250 and has decided to invest the funds in a money market fund with an expected annual return of 4.19​%. Bart will need the money in one year. The MMF imposes fees that will cost Bart $24 at the time he withdraws the funds in one year. How much money will Bart have in one year as a result of this​ investment? (Round to the nearest cent)

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter7: Losses—deductions And Limitations
Section: Chapter Questions
Problem 20P: Carlos opens a dry cleaning store during the year. He invests 30,000 of his own money and borrows...
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Bart is a college student who has never invested his funds. He has saved $1,250 and has decided to invest the funds in a money market fund with an expected annual return of 4.19​%. Bart will need the money in one year. The MMF imposes fees that will cost Bart $24 at the time he withdraws the funds in one year. How much money will Bart have in one year as a result of this​ investment? (Round to the nearest cent)

Expert Solution
Step 1

Money invested = $1,250

Annual rate of return = 4.19%

Cost of fee = $24

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