Franklin's investment fund had a balance of $280,000 on January 1, 1995 and a balance of $448,000 two years later. The amount of interest earned during the two years was $34,000, and the annual yield rate on the fund was 5.3%. Estimate the (dollar-weighted) average date of contributions to the account. (Round your answer to the nearest integer.) The average date of payment is 168 x days after January 1, 1995.

Franklin's investment fund had a balance of $280,000 on January 1, 1995 and a balance of $448,000 two years later. The amount of interest earned during the two years was $34,000, and the annual yield rate on the fund was 5.3%. Estimate the (dollar-weighted) average date of contributions to the account. (Round your answer to the nearest integer.) The average date of payment is 168 x days after January 1, 1995.

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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Miguel deposited $11,500 into a fund at the beginning of every quarter for 15 years. He then stopped making deposits into the fund and allowed the investment to grow for 4 more years. The fund was growing at 2.69% compounded monthly. a. What was the accumulated value of the fund at the end of year 15? b. What was the accumulated value of the fund at the end of year 19? c. What is the total amount of interest earned over the 19-year period? 2 company deposited $8,500 into an investment fund at the beginning of every quarter for 4 years. It then stopped making deposits into the fund and allowed the investment to grow for 3 more years. The fund was growing at 4.50% compounded monthly. a. What was the accumulated value of the fund at the end of 4 years ? b. What was the accumulated value of the fund at the end of 7 years ? c. What was the amount of interest earned over the 7-year period?
On September 1, 2010, you decided to put $ 10000 in a money market fund. On March 1, 2015, you deposit another $ 12000 and on January 1, 2018, you added another $ 14000. This fund pays interest at the annual rate of 7.2%, compounded monthly. Find the future value of the fund on January 1, 2018, just before the third deposit. a. $ 34372.59 b. $ 35346.46 c. $ 31635.26 d. $ 35257.40 e. $ 34877.29
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Vanessa deposited $16,000 into a fund at the beginning of every quarter for 11 years. She then stopped making deposits into the fund and allowed the investment to grow for 5 more years. The fund was growing at 3.85% compounded monthly. a. What was the accumulated value of the fund at the end of year 11? Round to the nearest cent b. What was the accumulated value of the fund at the end of year 16? Round to the nearest cent c. What is the total amount of interest earned over the 16-year period? Round to the nearest cent
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Shane contributed $2,250 at the end of every 3 months into an RRSP fund earning 2.41% compounded quarterly for 11 years. a. What is the future value of the fund at the end of 11 years? b. What is the amount of interest earned over this period?

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