A no-load (commission-free) mutual fund has grown at a rate of 11% compounded annually since its beginning. If it is anticipated that it will continue to grow at that rate, how much must be invested every year so that $15,000 will be accumulated at the end of five years? 4 Click the ieon te vieu the interegt footere. nding uhen ir 110/
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- Suppose that in a certain fund, money accumulates at a nominal interest rate of 4% convertible quarterly for the first five years. Afterwards, money grows at an annual effective rate of 3%. (a) Assume that n < m < 5. Solve for m and n that satisfy the following:What is the equivalent average annual effective rate of interest over 5-year period if the fund earns d^{(4)} = 4% for the initial 1 year, d^{(12)} = 6% for the next 2 years, and i^{(6)} = 9% in the last 2 years?A no-load (commission-free) mutual fund has grown at a rate of 10% compounded annually since its beginning. If it is anticipated that it will continue to grow at this rate, how much must be invested every year so that $120,000 will be accumulated at the end of six 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 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?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
- 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. P5,400.00A pension fund projects its cash flow obligations to be constant at $5Mln for the next 10 years and then grow by 5% in perpetuity starting year 11. Assume that interest rates are constant at 4% for the next ten years and will then increase to 6% from year 11 onwards. Determine the present value of the pension fund obligations. (Hint: You may want to divide the cash flows into the annuity and the growing perpetuity component.)You invested $11,500 at the end of each quarter for 6 years in an investment fund. At the end of year 6, if the balance in the fund was $291,000, what was the nominal interest rate compounded quarterly? 0.00 % Round to two decimal places SUBMIT QUESTION SU SAVE PROGRESS F
- 1. A certain fund currently has P100,000 and is invested at 3% interest compounded annually. How much withdrawal can be made at the end of each year so that the fund will have zero balance at the end of years? 2. What is the present value of an annuity of P150,000 payable at the end of each 6-month period for 2 yea if money is worth 8% compounded semiannually? 3. ABC bank pays interest at the rate of 2% compounded quarterly. How much will Ken have in the bank at the end of 5 years if he deposits P3,000 every month?What would be your future account value if you invested $175 each month into a growth mutual fund for 20 years? Assume an average annual rate of return of 13 percent. O $212,675.99 O $246,485.08 O $186,476.36 O $198,317.41Two payments of $13,000 and $6,800 are due in 1 year and 2 years, respectively. Calculate the two equal payments that would replace these payments, made in 9 months and in 4 years if money is worth 10.5% compounded quarterly. Calculate the time period of an investment in a mutual fund that matured to $61,850.12 yielding interest of $11,571.24 at 6.96% compounded monthly. What quarterly compounding nominal interest rate is earned on an investment that doubles in 8.5 years?