You deposit the following, at the end of each year, into a growth mutual fund that earns 8% per year. Calculate the future total value of the fund at the end of 5 years. Enter Your answer rounded to decimal places, no dollar sign, ex. 5100.54 Year Deposit 1 8,000 2 6,000 3 4,500 4 9,500 5 6,000

You deposit the following, at the end of each year, into a growth mutual fund that earns 8% per year. Calculate the future total value of the fund at the end of 5 years. Enter Your answer rounded to decimal places, no dollar sign, ex. 5100.54 Year Deposit 1 8,000 2 6,000 3 4,500 4 9,500 5 6,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 22P

See similar textbooks

Related questions

Q: Rodney Cashman has been investing $2,000 quarterly for the past 18 years in an equity mutual fund.…

A: Time value It tells that the money today received by the individual has more value than receiving…

Q: An investor has invested 75% of his assets in a money market fund. Generally, what is the investment…

A: Money market fund: It may be a sort of mutual fund that contributes as it were in profoundly liquid,…

Q: John freeman is investing $8,592 at the end of each year in a fund that earns 3% interest. in how…

A: Amount invested in investment gives interest. After the maturity of investment, amount invested and…

Q: You find a mutual fund that offers approximately 6% APR compounded monthly. You will invest enough…

A: Annuity means finite no. of payments which are same in size and made in equal intervals. A person…

Q: Q16: If you invest the $10,000 you receive at graduation (age 22) in a mutual fund that averages a…

A: Introduction: Investments are generally made by individuals during the present period in order to…

Q: Mary Stahely invested $ 2500 in a 48-month certificate of deposit (CD) that earned 8.5% annual…

A: Simple Interest is calculated by multiplying the interest rate by the principal by the time period.…

Q: At age 28 you invest P 25,000 into a mutual fund. If the fund averages a 7% annual return, your…

A: Using an appropriate discount rate or CVF, compounding is a strategy for calculating the future…

Q: On September 1, 2010, you decided to put $ 12000 in a money market fund. On March 1, 2015, you…

A: Note: All the Given Options are incorrect, so we are solving the correct one for you as per the…

Q: Jimmy has $212,810 accumulated in a 401K plan. The fund is earning a low, but safe, 3% per year. The…

A: Given, amount accumulated $212,810. Rate is 3% per year withdrawals are $23,000 each year

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: A pension fund manager decides to invest a total of at most $35 million in U.S. Treasury bonds…

A: Total amount for investment is $35million Interest rate on US Treasury bond is 3% Interest rate on…

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: Suppose you invest $500 in a mutual fund today and $600 in one year. If the fund pays 9% annually,…

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

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: Robert Williams is planning to invest $30,000 today in a mutual fund that will provide a return of 8…

A: Future Value = Present Value * (1+rate)^n Where, rate =8% n = no. of years i.e. 10

Q: Austin invested $22,500 in a mutual fund at 4.6% compounded annually. After 4 years, the interest…

A: The future value function or concept can be used to determine the future value of a present sum or…

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

A: Given information: Amount in the account is $3,900 Interest rate is 7% Number of years is 3

Q: You purchase 100 shares of a no-load mutual fund for $100 per share and sold the shares for $120 per…

A: Percentage return on the investment is the rate of return on the investment. Following is the…

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: Morgan Quincy wants to withdraw $36,300 each year for 14 years from a fund that earns 11% interest.…

A: Given: Annual payment = $36,300 Interest rate = 11% Years = 14 years.

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: how many years

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

Q: . $1,000 are deposited in the fund at the end of each of the first 10 years. This means that this is…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: Alexa plans to invest $50,000 in a mutual fund that requires either a 4% front-end load or a 4%…

A: Mutual Fund Mutual funds refer to the type of investment that invests money in different risky as…

Q: If you invest the $10,000 you receive at graduation (age 22) in a mutual fund that averages a 12%…

A: Investments are the processes and methods through which money is saved and funds are invested in…

Q: Suppose you retire with $1million at age of 65. You plan to invest your retirement into a mixture…

A: Calculations are done in excel: Return on Risk fund is calculated using random x values to simulate…

Q: Riley invests to a 7-year mutual fund. She invests P50,000 that has a net asset value of P1.25 per…

A: The question is based on the concept to find a return from investment in a mutual fund(MF). Return…

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: c) This same trader has decided to set up a sinking fund for the purpose of purchasing a truck in 2…

A: Sinking Fund is a fund that is kept aside or borrowed to pay off a debt or a loan. It helps the…

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: On September 1, 2010, you decided to put $ 15000 in a money market fund. On March 1, 2015, you…

A: The future value of an investment is the approximate value of buying and holding an investment for a…

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: Boretti has $400,000 in a stock fund. The fund pays a 10% return, compounded annually. If he does…

A: The future value (FV) is the amount which is received in the future, it includes the present value…

Q: Franco plans to invest P1,500 in a mutual fund. If he earns 12% interest compounded monthly, to what…

A: Future value of annuity is referred as the value of group, which used to recur the payment in the…

Q: million. The investor is planning on investing in this mutual fund for 20 years. calculate the…

A: Information Provided: Total assets = $508 million Expense ratio = 1.32% Fund charges (back end fee)…

Q: There are two investment options available for you. The first option requires you to invest 5,000$…

A: Compounding return is the capacity of investment to earn, on the previous earning along with the…

Q: Today, you invest P100,000 into a fund that pays 25% interest compounded annually. Three years…

A: Compound interest formula : Final amount = Principal (1+interest rate/number of compounding…

Q: Chuck Tomkovick is planning to invest $25,000 today in a mutual fund that will provide return of 8%…

A: INTEREST RATE (RETURNS) 8% YEARS 10 PRESENT VALUE $25,000 PMT 0

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: The AMD investment company has advertised a new Mutual Fund that has advertised to pay 10 %…

A: Actual Rate: It is the return (gain or loss) made on an investment or portfolio of an investor.…

Q: Value of investment after 10 years $ _______________

A: Investment refers to the allocation of the money in order to earn benefit over the money invested.

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: Ben invested P5000 in a fund at the beginning of every month for five years. The fund earning an…

A: Monthly investment (P) = P 5000 Period = 5 Years Number of monthly payments (N) = 5*12 = 60 Annual…

Q: . If you have been saving money since you were 20 years old and you save $4 daily and, at the end of…

A: We need to use future value of annuity formula to calculate account balance at 62 year age Future…

Q: There are two investment options available for you. The first option requires you to invest 5,000$…

A: Option I Present Value = $5,000 Interest Rate = 7% Time period = 27 Years Note:- Investment invested…

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: Mary Stahley invested $2500 in a 48-month certificate of deposit (CD) that earned 9.5% annual simple…

A: Calculating the total value of investment by annual simple interest on certificate of deposit. We…

Question

100%

You deposit the following, at the end of each year, into a growth mutual fund that earns 8% per year. Calculate the future total value of the fund at the end of 5 years.

Enter Your answer rounded to decimal places, no dollar sign, ex. 5100.54

Year	Deposit
1	8,000
2	6,000
3	4,500
4	9,500
5	6,000

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Similar questions

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?
You deposit the following at the end of each year into a growth mutual fund that earns 11 percent per year: How much should the fund be worth at the end of 5 years How much interest have you earned in total?
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?
At the beginning of each year, you deposit the following into a growthmutual fund that earns 6 percent per year:Year Deposit1 $ 5,000.002 7,500.003 4,500.004 5,500.005 6,200.00 ======== $28,700.00How much should the fund be worth at the end of 5 years?
If you invest P5,000 in a mutual fund extending a total annual return of 8% and you re-invest the proceeds each year, what will be the value of your investment after five years? a. P3,402.92 b. P7,346.64 c. P4,629.63 d. P5,400.00
Your objective is to have $25,650 in exactly 15 years. Today you invest $9,000 in a Schwab ‘Differential Rate’ stock fund. For the next 7 years Schwab guarantees that your investment will earn a 6.1 % annual interest rate. To achieve your objective, during the final 8 years the Schwab fund must pay an annual interest rate of:
A no-load (commission-free) mutual fund hasgrown at a rate of 12% compounded annually sinceits beginning. If it is anticipated that it will continueto grow at that rate, how much must be investedevery year so that $26,000 will be accumulated atthe end of seven years?
#17 You deposit the following at the end of each year into a growth mutual fund that earns 11 percent per year: How much should the fund be worth at the end of 5 years? How much interest have you earned in total? Year Deposit ($) 1 4,000 2 3,500 3 2,500 4 2,000 5 1,700 $13,700
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?
You have just invested a one -time amount of $4,000 in a stock -based mutual fund. This fund should earn (on average) 6% componded annually over a long period of time . How much will your investment be worth in 28 years?
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%