You deposit the following at the end of each year into a growth mutualfund that earns 11 percent per year:Year Deposit ($)1    4,0002    3,5003    2,5004    2,0005   1,700 ========     $13,700a. How much should the fund be worth at the end of 5 years?b. How much interest have you earned in total?

Q: A trust fund will pay you P5000 per month for life once you turn 18. You are currently 10. Interest…

A: Perpetual Monthly Payments = 5000 Interest Rate = 6% Compounded Quarterly Number of compounding…

Q: Next year, you will begin receiving $173 per year in perpetuity from a family trust fund (first…

A: In the given question we require to compute the present value of future cashflows from perpetuity.

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A: Information Provided: Invested amount = $11,500 Years = 6 Future value of invested amount =…

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A: Solution: An amount deposited at end of every period is known as ordinary annuity. The formula for…

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A: Effective annual interest rate(EAR) refers to the real rate of return that we earn on our savings or…

Q: suppose you have $5,000 in a mutual fund in your IRA. Suppose also that you put $4,000 into the…

A: The future value is the amount that will be received at the end of a certain period. In simple…

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: This exercise compares the future value of investing an amount of money in different time frames. A…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

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: find the size of each 4 payments made at the end of each year into a 9% rate sinking fund which…

A: Future value (FV) = 63000 Interest rate (r) = 9% Number of annual payments (n) = 4

Q: If you invest P5,000 in a mutual fund extending a total annual return of 8% and you re-invest the…

A: The future value of the cash flow is the future worth of a cash flow at a certain rate of interest…

Q: You deposited $8,300 in a savings account. The account will earn 8 percent annual compound interest,…

A: Interest: It can be defined as the amount that is charged by the lender on the amount lent to the…

Q: Your client has systematically invested $1000 at the end of each half-year for the past 17 years.…

A: The future value of the annuity is the total value of all the payments which is occurred regularly…

Q: Larry James is planning to invest $25,400 today in a mutual fund that will provide a return of 0.10…

A: We need to find the future value of investment of Mr.Larry James. Future value is the amount reccive…

Q: A mutual fund pays 7% compounded monthly. How much should I invest now so that 3 years from now I…

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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: You deposit $50,000 into a fund that pays 5% per year compounded annually. You plan to make the…

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

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: how many years

A: The $50000  fund is a lump sum amount today. The $6000 withdrawl per year is ordinary annuity. To…

Q: Calculate the future value of end-of-quarter payments of $5,000 made for 5 years into an investment…

A: The value of current payment or upcoming flow of payments at any future date when flow of payment…

Q: An investor needs $17,000 in 13 years. (a) What amount should be deposited in a fund at the end of…

A: Amount needed " FV" is $17,000 Time period is 13 years Interest rate is 7% Compounded Quarterly To…

Q: . What is the present worth of 4100 deposited at the end of every three months for 5years if the…

A: The future value is the amount deposited and interest accumulated over the period of time. The…

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: Using a discount rate of 5.5% compounded annually, a pension fund estimates that the present value…

A: Rate sensitive assets and liabilities: The assets and liabilities whose prices change with changes…

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: Semiannual deposits, beginning with $500 and increasing by $100 with each subsequent deposit, are…

A: a) Computation:

Q: Calculate the future value of end-of-month payments of $500 made for 4 years into an investment fund…

A: Future Value of Ordinary Annuity refers to the concept which gives out the compounded or future…

Q: You manage an investment fund that sells annuities. You sell a 6-year ordinary level annuity that…

A: Monthly payment = $2115 Interest rate = 3.46% APR compounded monthly So, monthly interest rate =…

Q: Bi-monthly deposits of 16,000 are made to accumulate a fund at the end of 8 years. Round off final…

A: Here, Bi- Monthly Deposit is $16,000 Time Period of Deposit is 8 years Note: Here, it is not clearly…

Q: How much should GlassilueCat invest in a fund to be able to withdraw $22.000 at the end of every 3…

A: Present Value  The present value is the value of cash flow stream or the fixed lump sum amount at…

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: A fund is built with annual payments increasing by $1 from $1 to $10 and then decreasing by $1 to…

A: The answer to this question is a Palindromic annuity The formula to be used for solving this is,

Q: You buy a mutual fund for $1,000. It annually distributes $60 for eight years, after which you sell…

A: Expected rate of return can be described as the total profit or loss on a particular investment over…

Q: Assume that you want to have $ 4450 saved in a sinking fund in 1 year. The account pays 2%…

A: Future value of annuity = P * [ (1+r)^n  - 1 ] /r  Where, P = Periodic payment  r =rate per period…

Q: Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an…

A: The question is based on the calculation of effective annual interest rate and Future value of…

Q: You deposit 20,000 today into a fund paying ?(1)=8%. From this fund, you receive 10 payments of R,…

A: Under present value concept, present value is the current monetary value of the future receipt or…

Q: Red Company invested $20,000 in a fund that was earning interest at a rate of 3.00% compounded…

A: Answer a:- The future value of an investment is calculated using the following formula:- Future…

Q: A no-load (commission-free) mutual fund hasgrown at a rate of 12% compounded annually sinceits…

A: Future value: It can be defined as the value of an investment or any asset at a specified future…

Q: You deposit $9500 per quartely for 1 years at i, = 8.31 %. This fund then provides for a perpetuity…

A: Perpetual payment is an arrangement to cash flows for an infinite time period, under the perpetuity…

Q: Find the size of each of 8 payments made at the end of each year into a 9% rate sinking fund which…

A: Formula FVA = P*((1+i)n-1)/i Where FVA - Future value of annuity i.e. 55000 P - Annual payment i -…

Q: At the beginning of each year, you deposit the following into a growthmutual fund that earns 6…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…