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?

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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A no-load (commission-free) mutual fund has
grown at a rate of 12% 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 $26,000 will be accumulated at
the end of seven years?

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