11. For which of the following clients would a mutual fund C share be most suitable? Assume that breakpoints kick in at $25,000. a. Jordan, who has $15,000 to invest now and intends to maintain her account for at least 5 years. b. Thelma, who has $20,000 to invest now and intents to add $5,000 to the account by the end of the each of the next three years c. Mary, who has $35,000 to invest and intends to maintain her fund for at least five years d. Mike, who has $5,000 to invest now, will add an additional $5,000 in six months, but doesn't intend to maintain his investment for much more than a year

11. For which of the following clients would a mutual fund C share be most suitable? Assume that breakpoints kick in at $25,000. a. Jordan, who has $15,000 to invest now and intends to maintain her account for at least 5 years. b. Thelma, who has $20,000 to invest now and intents to add $5,000 to the account by the end of the each of the next three years c. Mary, who has $35,000 to invest and intends to maintain her fund for at least five years d. Mike, who has $5,000 to invest now, will add an additional $5,000 in six months, but doesn't intend to maintain his investment for much more than a year

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

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?
Question 1(a) Currently, Eric has $100,000 and her investment horizon is 8 years (i.e., all investments will be terminated at the end of year 8). He is considering one of the following investments products being offered by his private banker from OCBC Bank:• Greentech Fund: First year return is 4% per year, and this will increase by 1% each year for the next four years. Thereafter, returns will remain constant.• Net-zero Fund: Investment can only be made two years later (i.e., His money is in the bank for the first 2 years). When the investment is made, the return on the first three years is 6% per year and 12% per year thereafter.Interest of 3% per year (compounded monthly) can be earned if Eric deposits her money in an OCBC savings account.Analyze which is a better investment product. You are required to show all relevant workings (b) SingLife is offering an endowment policy where Eric, aged 40 today, will need to make the following payments:• 41st…
Paul invests X in a fund earning 5% effective per annum. Inn return, he receives 1 2 at the end of each quarter in the second year,..., 1. at the end of each quarter in the first and 20 at the end of each quarter in the 20th year. Determine X. year,
Manshu
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
1. A mutual fund has an offer price of $7.82 per share and a net asset value of $7.41. What is the sales charge percent? (Round to the nearest tenth.) A. 5.2% B. 5.5% C. 6.5% D. 94.8% 2. If Tanya's husband were to die, she and her children could live on $64,400 per year. Tanya makes $35,100 annually, and estimates additional income of $21,500 from other sources. How much insurance should she purchase on her husband to cover the shortfall, assuming a 16.7% prevailing interest rate? (Round your answer to the nearest $1,000.) A. $40,000 B. $42,000 C. $47,000 D. $48,000
The following tutorial questions serve as practice questions on TVM and Bond Valuation. (Show Working) 1. Your grandfather left an inheritance for you of $100,000. However you can only drawdown on the investment as follows: Years 1 – 3 $15,000 each year Year 4 to 6 $10,000 each year Year 7 $25,000 Interest on the fund is 5%. a. What is the present worth of this inheritance? b. Due to high liquidity interest rate have dropped to 4%. What will be the impact on the present worth of this inheritance as a consequence of the market change?
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 $198,317.41
C.10. Assume that at age 25 you have decided to become a millionaire by age 65. You decide to in- vest regularly at the end of every year for 40 years into a fund earning 12 percent interest. The initial investment deposit at EOY 1 will be relatively small, but you expect to increase the amount of each subsequent deposit by 8 percent every year thereafter. (a) Find the amount of the initial investment (deposit at EOY 1). (b) Find the amount of the final investment (deposit at EOY 40).
3. If you invest P5,000 in a mutual fund with a total annual return (interest rate) of 8% and you re-invest the proceeds each year, what will be the value of your investment after five years? a.P3,402.92b.P6,597.08c.P7,000.00d.P7,346.64
4. Jacob invests $2500 a year in a mutual fund for 15 years. If the market value of the fund increases 5% per year, what will be the value of the fund after 15 deposits?
What are the After-tax annualized returns from the following two funds if you invest $1000 in each of them? Assume: You invest for 4 years (hold investments till end of 4th year) and sell your shares at the beginning of 5th year. Tax rate is 25%. Fund B: Distributes 5% Distributed Income return per period. Provides 5% Capital Gain Return Per Period.

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS