A good stock-based mutual fund should earn at least 7% per year over a long period of time. Consider the case of Barney and Lynn, who were overheard gloating (for all to hear) about how well they had done with their mutual fund investment." We turned a $37,500 investment of money in 1982 into $150,000 in 2007." a. What return (interest rate) did they really earn on their investment? Should they have been bragging about how investment-savvy they were? b. Instead, if $1,500 had been invested each year for 25 years to accumulate $150,000, what return did Barney and Lynn earn? E Click the icon to view the interest and annuity table for discrete compounding when i= 7% per year. a. The interest rate Barney and Lynn really earn on their investment is 5.7 %. (Round to the one decimal place.) Barney and Lynne should not have been bragging about how investment-savvy they were. b. The interest rate Barney and Lynn earn on their investments is%. (Round to the one decimal place.)
A good stock-based mutual fund should earn at least 7% per year over a long period of time. Consider the case of Barney and Lynn, who were overheard gloating (for all to hear) about how well they had done with their mutual fund investment." We turned a $37,500 investment of money in 1982 into $150,000 in 2007." a. What return (interest rate) did they really earn on their investment? Should they have been bragging about how investment-savvy they were? b. Instead, if $1,500 had been invested each year for 25 years to accumulate $150,000, what return did Barney and Lynn earn? E Click the icon to view the interest and annuity table for discrete compounding when i= 7% per year. a. The interest rate Barney and Lynn really earn on their investment is 5.7 %. (Round to the one decimal place.) Barney and Lynne should not have been bragging about how investment-savvy they were. b. The interest rate Barney and Lynn earn on their investments is%. (Round to the one decimal place.)
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
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Transcribed Image Text:A good stock-based mutual fund should earn at least 7% per year over a long period of time. Consider the case of Barney and Lynn, who were overheard gloating (for all to hear) about how well they had done with their mutual fund investment." We turned a
$37,500 investment of money in 1982 into $150,000 in 2007."
a. What return (interest rate) did they really earn on their investment? Should they have been bragging about how investment-savvy they were?
b. Instead, if $1,500 had been invested each year for 25 years to accumulate $150,000, what return did Barney and Lynn earn?
Click the icon to view the interest and annuity table for discrete compounding when i = 7% per year.
a. The interest rate Barney and Lynn really earn on their investment is 5.7 %. (Round to the one decimal place.)
Barney and Lynne should not have been bragging about how investment-savvy they were.
b. The interest rate Barney and Lynn earn on their investments is %. (Round to the one decimal place.)
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