Question 5 of 8Courtney invested the profit of his business in an investment fund thatwas earning 2.25% compounded monthly. In 3 years, he beganwithdrawing $4,500 from this fund at the end of every 6 months. If themoney in the fund lasted for the next 6 years, how much money did heinitially invest in the fund?Please include a well-labelled timeline diagram. Full solutions should beshown on separate sheets of paper. Submit your solutions.$Round to the nearest cent%24

Present value refers to the current valuation for a future sum. Investors determine the present…

Courtney invested the profit of his business in an investment fund tha was earning 2.25% compounded monthly. In 3 years, he began withdrawing $4,500 from this fund at the end of every 6 months. If th money in the fund lasted for the next 6 years, how much money did h initially invest in the fund? Please include a well-labelled timeline diagram. Full solutions should shown on separate sheets of paper. Submit your solutions.

Courtney invested the profit of his business in an investment fund tha was earning 2.25% compounded monthly. In 3 years, he began withdrawing $4,500 from this fund at the end of every 6 months. If th money in the fund lasted for the next 6 years, how much money did h initially invest in the fund? Please include a well-labelled timeline diagram. Full solutions should shown on separate sheets of paper. Submit your solutions.

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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At the start of the year, Piotr has an investment fund worth $30,000.00. 4 months later the fund is worth $30,750.00 and Piotr deposits another $3,000.00. 4 months after that, the fund is worth $34,425.00 and Piotr withdraws the $3,000.00 his deposited the time before. At the end of the year the fund is worth $31,425.00. a) What is the Dollar Weighted Return for Piotr's investment? b) What is the Time Weighted Return for the investment fund? c) What would the fund balance at the end of year have to be to make the Time Weighted Return for the year equal the Dollar Weighted Return for the year? d) In this case (TWR = DWR) what was the return on the investment fund in the last time period?
David Quincy wants to withdraw $30,800 each year for 10 years from a fund that earns 10% interest. Click here to view factor tables. How much must he invest today if the first withdrawal is at year-end? How much must he invest today if the first withdrawal takes place immediately? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.) First withdrawal at year-end First withdrawal immediately
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Please refer to the formulas in the lesson and on the following website. Pay particular attention to the examples. Scroll to the bottom to review a table with a list of various formula arrangements that may be helpful in completing this assignment. 1) If you deposit $4,000 today in a bank account and the interest is compounded annually at 10 percent, what will be the value of this investment: a. five years from now? b. ten years from now? c. fifteen years from now? d. twenty years from now? 2) If a business manager deposits $12,000 in a savings account at the end of each year for twenty years, what will be the value of her investment: a. at a compounded rate of 12 percent? b. at a compounded rate of 18 percent? 3) The chief financial officer of a home health agency needs to determine the present value of a $60,000 investment received at the end of year 15. What is the present value if the discount rate is 5%? 4) After completing her residency, an obstetrician plans to invest $9,000…
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