Sean's investment of $81,400.00 in a fund matured to $155,777.80 in 8 years. If the interest in the fund is compounded semi-annually, calculate the following rounded to two decimal places. (i) (1) % b. Nominal interest rate (j) (j) a. Periodic interest rate
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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?The file MutualFunds contains a data set with information for 45 mutual funds that are part of the Morningstar Funds 500. The data set includes the following five variables: Fund Type: The type of fund, labeled DE (Domestic Equity), IE (International Equity), and FI (Fixed Income) Net Asset Value (): The closing price per share Five-Year Average Return (%): The average annual return for the fund over the past five years Expense Ratio (%): The percentage of assets deducted each fiscal year for fund expenses Morningstar Rank: The risk adjusted star rating for each fund; Morningstar ranks go from a low of 1 Star to a high of 5 Stars. a. Prepare a PivotTable that gives the frequency count of the data by Fund Type (rows) and the five-year average annual return (columns). Use classes of 09.99, 1019.99, 2029.99, 3039.99, 4049.99, and 5059.99 for the Five-Year Average Return (%). b. What conclusions can you draw about the fund type and the average return over the past five years?Sean's investment of $81,400.00 in a fund matured to $155,777.80 in 8 years. If the interest in the fund is compounded semi-annually, calculate the following rounded to two decimal places. a. Periodic interest rate (i)(i) % b. Nominal interest rate (j)
- Suppose an individual invests $20,000 in a load mutual fund for two years. The load fee entails an up-front commission charge of 2.5 percent of the amount invested and is deducted from the original funds invested. In addition, annual fund operating expenses are 0.55 percent. The annual fees are charged on the average net asset value invested in the fund and are recorded at the end of each year. Investments in the fund return 7 percent each year paid on the last day of the year. If the investor reinvests the annual returns paid on the investment, calculate the annual return on the mutual funds over the two-year investment period. Select one: a. 3.77% b. 5.09% c. 7.54% d. 8.86% e. 10.18%Suppose an individual invests £25,000 in a load mutual fund. The load fund entails an up-front commission charge of 4 percent of the amount invested and is deducted upfront. In addition, annual fund operating expenses are 0.85 percent, which is charged on the average net asset value invested in the fund. The return on this fund is 6 percent each year paid on the last day of the year. What would be the investor’s return on this fund after one year?Red Company invested $10,000 in a fund that was earning interest at a rate of 4.00% compounded semi-annually. After 2 years and 6 months, the company transferred these funds to another investment that was earning interest at 5.50% compounded monthly. a. What is the balance in the fund at the end of 2 years and 6 months? $11,040.81 Round to the nearest cent b. What is the balance in the fund at the end of 6 years (from the initial investment)? $0.00 Round to the nearest cent c. By what amount did the fund grow during the 6 year period? Round to the nearest cent Give typing answer with explanation and conclusion
- An investor pays the following separate amounts into a fund: £12,100 at t=7 years £17,900 at t=13 years £12,300 at t=28 years The fund pays an effective quarter-yearly rate of discount of 2.3% during the first 7 years and an effective half-yearly rate of interest of 4.9% for the remaining period until the end of year 28. Assuming that no withdrawals are to be made throughout the entire term of this investment, calculate the present value of the fund (i.e. at time t=0). ONLY formulas, please, no tables) answer is NOT 12607.61Red Company invested $10,000 in a fund that was earning interest at a rate of 3.00% compounded semi-annually. After 3 years and 9 months, the company transferred these funds to another investment that was earning interest at 5.50% compounded monthly. a. What is the balance in the fund at the end of 3 years and 9 months? b. What is the balance in the fund at the end of 6 years (from the initial investment)? c. By what amount did the fund grow during the 6 year period?An investor pays the following separate amounts into a fund: £12,000 at t=7 years, £17,000 at t=13 years, £12,000 at t=28 years The fund pays an effective quarter-yearly rate of discount of 2.3% during the first 7 years and an effective half-yearly rate of interest of 4.9% for the remaining period until the end of year 28. Assuming that no withdrawals are to be made throughout the entire term of this investment, calculate the present value of the fund
- An investor pays the following separate amounts into a fund: £11,900 at t=6, £17,600 at t=14, and £10,700 at t=27. The fund pays an effective annual rate of interest of 11.9% during the first 7 years and effective half-yearly rate of discount of 3.5% for the remaining period until the end of year 27. Assuming that no withdrawals are to be made throughout the entire term of this investment, calculate the present value of the fund (i.e. at t=0). (correct answer = 12097.62, asnwer IS NOT £16,538.08, no tables, please, ONLY formulas)A trust fund with a beginning balance of $24,000 earns interest at 5.0% compounded quarterly. If withdrawals of $3,300 are made at the beginning of every three months, starting 10 years from now, how long will the trust fund last? Round properly. Answer in quarters.At the beginning of the year, an investment fund was established with an initial deposit of 500 . A deposit 1000 is made at the end of each month for the first six months. Starting from theend of month 7, a withdrawal of 300 is made at the end of each month for 5 months for a total of 5 withdrawals. The amount in the fund at the end of the year is 12,500. Calculate the dollar-weighted(money-weighted) yield rate earned by the fund during the year.