Investment: A fund is averaging 6.8 APR. Using the rule of 70 how long will it take for your investment to be worth 4 times the original amount?
Q: stment of 100,000 is to be used to make payments of 4,000 at the end of each quarter for as long as…
A: The payments are made periodically that carry the payment of principal amount and payment of…
Q: The rule of 72’s states that the number of years for an investment to double is approximately 72…
A: Given: FV=2*PV Number of years = 6,8,9,12,18, and 24 Using the formula: FV=PV×1+rt we can solve for…
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A: Nominal interest rate is the stated interest rate on the fund, whereas effective interest rate is…
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 If $6,340 is withdrawn each year,…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: You are considering an investment in a mutual fund with a 4% load and expense ratio of 0.5%. You can…
A: Concept. Mutual fund is professionally managed fund. Hence various expenses are incurred to manage…
Q: You are considering investing $1,000 in an investment fund at the end of every quarter for the next…
A: As per the time value of money concept, a certain amount held today is worth more than holding the…
Q: An investor puts $2,000 into a deposit account with a fixed rate of return of 10% per year. A second…
A: The aggregate investment made by the investor will be considered as portfolio with $2,000 investment…
Q: 1. If a certain fund earns an interest of 12% compounded quarterly, what is the effective rate of…
A: Interest rate means the rate of interest that the investment fetches during the period of time. It…
Q: Suppose money invested in a hedge fund earns 1% per trading day. There are 250 trading days per…
A: Given data; Return on investment = 1% Number of trading days = 250 investment amount = $100
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: Use the "rule of 72" to estimate the doubling time (in years) for the interest rate, and then…
A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…
Q: Your RRSP savings of $25,000 are converted to a RRIF at 5.25% compounded monthly that pays $5,300 at…
A: Rate = 5.25% Monthly rate (I/Y) = 5.25/12 = 0.437500 Amount available (PV)…
Q: Investor Matt has $822,000 to invest in a CD and a mutual fund. The CD. yields 4.1% and the mutual…
A: The maximum return can be calculated as weighted average return of mutual fund and CD
Q: Number of periods: You invest $150 in a mutual fund today that pays 9 percent interest annually. How…
A: Future Value formula used: FV= PV(1+r)^n FV= future value = 300 (amount double = 150*2) PV= present…
Q: An account invested in a money market fund grew from $73,265.45 to 73,554.71 in a month. What was…
A: The formula to calculate interest rate per month is given below:
Q: A pension fund is expected to produce a cash flow of $1,000 at the end of the upcoming year. This…
A: Here, Year 1 cash flows is $1000. This cash flow are increasing 10% for five years and after five,…
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: f you plan to invest for 5 years, what annual rate of return (i.e. gross ret) must the fund…
A: Information Provided: Expense Ratio = 0.5% CD interest = 3.5% Load of mutual fund = 4.5%
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A: An investment fund is a managed fund that collects capital funds from individual investors and…
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A:
Q: If we were to invest $10,000 in an S&P 500 index fund, pay 0.2% annual fees,and add $100 a month…
A: Computation:
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: Finance ***don’t use excel to solve*** PIMCO Equity Fund has a 3% load. Annual fees are 0.35%, and…
A: Investment means engaging your funds to generate income for the coming years. There are various…
Q: A pension fund portfolio begins with $500,000 and earns 15% the first year and 10% the second year.…
A: Therefore, the time-weighted rate of return is 12.47%.
Q: Quarterly deposits of $1,000 are made at t = 1, 2, 3, 4, 5, 6, and 7. Then, with drawals of size A…
A: The Future value of $1000 quarterly deposits at the end of the 7th quarter equals :…
Q: How much would a business have to invest in a high-growth fund to receive $22,000 every month for 5…
A: Solution:- When an equal amount is receivable each period, it is called annuity. So, present value…
Q: Your discount rate is 0.40% for a $1,000 T-bill that matures in 91 days. Calculate your investment…
A: Treasury Bills(T- Bills) provide the temporary outlet for short-term surplus and also provide…
Q: An investor with a leverage ratio of 5 who can invest in a fund with a yield of 10% per year and can…
A: The question is based on the concept of leveraged portfolio return with borrowing.
Q: Value of the portfolio containing single asset is $100 thousand . Return of the asset is normally…
A: The probable maximum loss (PML) is the largest amount of money that an insurer is prone to losing on…
Q: Jake has $19,000 invested in Vanguard Money Market Mutual Fund for 10 days at a 7-day yield of…
A: 7 day yield = 1.06% n = 10 days Amount invested = $19000
Q: In its first 10 years a mutual fund produced an average annual return of 19.17%. Assume that money…
A: Future value is the total amount of money at a specified point of time.
Q: Since 2007, a particular fund returned 13.2% compounded monthly. How much would a $6000 investment…
A: Investing is a critical component of wealth growth. It enables the investor to fight inflation,…
Q: You are considering investing in a mutual fund. The fund is expected to earn a return of 19.0…
A: Given, Expected return= 19% Standard deviation = 10.3%
Q: Suppose money invested in a hedge fund earns 1% per trading day. There are 250 trading days per…
A: Annual rate of return refers to the return earned on an investment in a year. Annual rate of return…
Q: s first 10 years a mutual fund produced an average annual return of 20.77%. Assume that money…
A: The time period or the number of years (NPER) refers to the time it would require for the investment…
Q: 3. Suppose that this fund has a midyear cash inflow of $ 20 million rather than an outflow. Would…
A: The time weighted rate of return is a tool that helps to compute the annual compound growth rate on…
Q: How long will it take for GH¢300 to grow to GH¢1,500 at the interest rate specified? 4 percent 8…
A: Since you have posted multiple questions, we will answer the first one for you. If you want a…
Q: How much would a business have to invest in a high-growth fund to receive $14,000 every month for 6…
A: Investments are the ways by which individuals and corporations park or save their money and funds in…
Q: An investor has asked for your help with the following time value of money applications. Table 6-4.…
A: a. Present value = Amount to be received in six years x Discount factor of present value of $1(18%,…
Q: QuantAlpha fund charges a 12b-1 fee of 1% and maintains an expense ratio of 0.75%. Assume the rate…
A: Value of investment = Invested amount*(1+r)n *(1-annual charges %)n r is rate of return of fund…
Q: A no-load (commission-free) mutual fund has grown at a rate of 10% compounded annually since its…
A: The future value is the amount that will be received at the end of a certain period. In simple…
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: $3000 into the fund. If the investments grew at a rate of 8% per year over the 15 years, how much is…
A: Information Provided: Present value = $10,000 Interest rate = 8% Term = 15 years Annual deposit =…
Q: eflook roblem 17-06 he Global Growth Fund is a load fund with a 5 percent front load fee. It started…
A: Net asset value is the difference of funds assets and liabilities.
Q: Suppose you invest into Fund X for 15 months with a monthly interest rate of 8%. Each month you pay…
A: Future Value: It is the worth of a current asset at a future date based on an assumed rate of…
Q: Example 26a (Varying Force of Interest) A fund earns interest at a force of interest 8, =kt . A…
A: Future Value =Present value * (1+k)^n Where, k = rate of interest
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 %…
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- GROW fund Charges a front end load of 3%, but has no 12B-1 fee an expense ratio of .5%. Assume the rate of return on fund portfolio (before any fees) is 7% per year. how much will an investment of $1000 in the fund grow to after 11 years?QuantAlpha fund charges a 12b-1 fee of 1% and maintains an expense ratio of 0.75%. Assume the rate of return on fund portfolio (before any taxes) is 6% per year. How much will an investment of $1000 in the fund grow to after 10 years?You invest money in a fund that paid 9% simple interest paid annually. If it is worth $21,200.00 in 11 months, a) what is the present value? $ b) What is the rate of return? (answer as a percent 2 decimal places)
- A closed-end fund starts the year with a net asset value of OMR10. By year end, NAV equals OMR10.10. At the beginning of the year, the fund was selling at a 3% premium to NAV. By the end of the year, the fund is selling at a 6% discount to NAV. The fund paid year end distributions of income and capital gains of OMR2.50. What is the rate of return to an investor in the fund during the year?Consider an investment fund that starts out with £190,000. After one year, the value of the fund is £203,000. The investor deposits an additional £11,000 to the fund. After a second year, the value of the fund is £207,000. The investor withdraws £41,000. After a third year, the value of the investment fund is worth £177,000. Compute the money-weighted rate of return Enter a percentage correct to 1 decimal place Compute the time-weighted rate of return Enter a percentage correct to 1 decimal placeThe value in pounds of a fund at time t = 0 is V0 = 50, 000. After one year (at t = 1) it has increased to V1 = 51, 500 and at that time £1, 500 is withdrawn. After two years (at t = 2) the fund is worth V2 = 50, 800. (a) Compute the time-weighted rate of return. (b) If the fund is liquidated after two years what is the yield that has been achieved?
- Elise Carlo is adapting the cost averaging in investment. She decided to invest in a mutual fund for 6 months with a monthly investment of P4,500.00. The initial shares price of the fund was listed at P200 then decreases by 5% every month for a year. Compute for the average price using cost-averaging method.Loaded-Up Fund charges a 12b-1 fee of 1% and maintains an expense ratio of 0.90%. Economy Fund charges a front-end load of 2%, but has no 12b-1 fee and has an expense ratio of 0.10%. Assume the rate of return on both funds’ portfolios (before any fees) is 5% per year. Required: a. How much will an investment of $100 in each fund grow to after 1 year? (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. How much will an investment of $100 in each fund grow to after 2 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.) c. How much will an investment of $100 in each fund grow to after 9 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.)Carlo Elise is adapting the cost averaging in investment. He decided to invest in a mutual fund for 6 months with a monthly investment of P3,000.00, The initial shares price of the fund was listed at P100 then increases by 5% every month for a year. Compute for the average price using cost-averaging method.
- 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?Loaded-Up Fund charges a 12b-1 fee of 0.75% and maintains an expense ratio of 0.75%. Economy Fund charges a front-end load of 2.5%, but has no 12b-1 fee and an expense ratio of 0.25%. Assume the rate of return on both funds’ portfolios (before any fees) is 12% per year. How much will an investment of $1,000 in each fund grow to after: 1 year 3 years 10 yearsLoaded-Up Fund charges a 12b-1 fee of 1% and maintains an expense ratio of 0.65%. Economy Fund charges a front-end load of 2%, but has no 12b-1 fee and has an expense ratio of 0.35%. Assume the rate of return on both funds’ portfolios (before any fees) is 7% per year. Required: How much will an investment of $100 in each fund grow to after 1 year? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Mutual Fund Investment Values Loaded Up Fund Economy Fund How much will an investment of $100 in each fund grow to after 4 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Mutual Fund Investment Values Loaded Up Fund Economy Fund How much will an investment of $100 in each fund grow to after 11 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Mutual Fund Investment Values Loaded Up Fund Economy Fund