Austin invested $22,500 in a mutual fund at 4.6% compounded annually. After 4 years, the interest rate was changed to 8.7% compounded quarterly. After the rate change, the money is left in the account for an additional 6 years. What was the value of the fund after the the first 4 years? What was the value of the fund after the full 10 years?

Austin invested $22,500 in a mutual fund at 4.6% compounded annually. After 4 years, the interest rate was changed to 8.7% compounded quarterly. After the rate change, the money is left in the account for an additional 6 years. What was the value of the fund after the the first 4 years? What was the value of the fund after the full 10 years?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 20P

See similar textbooks

Similar questions

Red 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?
Jacqueline invested $51,400 in a mutual fund at 3.2% compounded monthly. After two years the interest-rate was changed to 7.8% compounded annually. After the rate change, the money is left in the account for an additional seven years. How much do was the value of the fund after the full 9 years.
Tyler invested $20,300 in a mutual fund at 2.8% compounded semi-annually. After 3 years, the interest rate was changed to 8.2% compounded annually. After the rate change, the money is left in the account for an additional 8 years. How much was the value of the fund after the full 11 years?
Trey invested $27,700 in a mutual fund at 4.1% compounded quarterly. After 2 years, the interest rate was changed to 7.5% compounded monthly. After the rate change, the money is left in the account for an additional 5 years. How much was the value of the fund after the full 7 years?
Suppose an individual invests $40,000 in a load mutual fund for two years. The load fee entails an up-front commission charge of 3 percent of the amount invested and is deducted from the original funds invested. In addition, annual fund operating expenses (or 12b-1 fees) are 0.60 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 5 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 fund over the two-year investment period. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161))) Annual return %
The Simpson Company invested $20000 in a fund that was earning interest at a rate of 5% compounded semi-annually. After 3 years and 9 months, the company transferred these funds to another investment that was earning interest at 5.5% compounded monthly, What is the balance in the fund at the end of 5 vears (from the initial investment)? Show your calculator entries in the table below with the first 3 years and 9 months on the left and the remainder of the time on the right. Save Ans N = N= I/Y = IY = PV = PV = PMT = PMT = FV = FV = PY = PY = C/Y = CY = The balance in the fund at the end of 5 years is $
Kyle invested money in a mutual fund for ten years. The interest rate on the mutual fund was 3% compounded quarterly for the first five years and 5% compounded semi- annually for the next five years. At the end of the ten years, Kyle's mutual fund had accumulated to $41,788.50. a. Calculate the amount that was in the mutual fund after the first five years when the interest rate changed. Round to the nearest cent b. Calculate the amount that was invested in the mutual fund at the beginning of the period. Round to the nearest cent c. Calculate the total amount of interest earned from this investment. Round to the nearest cent
Ben invested P5000 in a fund at the beginning of every month for five years. The fund earning an interest rate of 5% compounded monthly. What was the total amount invested? a. None of the above b. P266, 057.50 c. P99, 378.77 d. P22, 729.75
Jordan deposited $23,500 into a fund at the beginning of every quarter for 20 years. He then stopped making deposits into the fund and allowed the investment to grow for 3 more years. The fund was growing at 4.31% compounded monthly. a. What was the accumulated value of the fund at the end of year 20? Round to the nearest cent b. What was the accumulated value of the fund at the end of year 23? Round to the nearest cent c. What is the total amount of interest earned over the 23-year period? Round to the nearest cent
You deposit $600 today into a fund that you intend to leave invested for 6 years. The fund earns 6% interest compounded annually. Indicate the inputs to be entered into the financial calculator keys. What is the value of the fund to be accumulated at the end of year 6? (Round future value answer to two decimal places (e.g., 52.75) and interest rate to one decimal place (e.g., 527.5).) Inputs Calculator N Keys Future value $ 6 I 6 PV 600
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
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?