If an investor buys shares in a no-load mutual fund for $33 and after eight years the shares appreciate to $60, what is (1) the percentage return and (2) the annual compound rate of return using time value of money? Round your answers to two decimal places. Percentage return:   % The annual compound rate of return:   %

Q: h investment as an equation, and then arrange the investments in ascending order (from least to…

A: Future value includes the interest on investment and the principal amount.

Q: 3. An investor buys a 10 year, 3% coupon, ATT bond for $93. The par value is $100. What is the YTM…

A: Bond yield refers to the amount of return an investor can expect to earn on a bond investment if it…

Q: An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $300…

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Q: Maryse has invested $1000 into mutual fund at a 5% annual rate of return, compounded daily. What are…

A: Nominal interest rate is the stated interest rate on the fund, whereas effective interest rate is…

Q: An investment will pay $50 at the end of each of the next 3 years, $250 at the end of Year 4, $400…

A: Present value is the current worth of the future payments to be made at a specified interest rate.…

Q: The amount of money originally put into an investment is known as the present value P of the…

A: The concept used:

Q: Assume you can earn 12% per year on your investments. a. If you invest $60,000 for retirement at age…

A: Part 2:Explanation:step 1:Understand the formula for calculating future value (FV):FV = C * (1 +…

Q: Ken Francis is offered the possibility of investing $10,062 today; in return, he would receive…

A: Present Value is the value of one dollar as of today which will be received in future. For the…

Q: Bill Padley expects to invest $13,000 for 8 years, after which he wants to receive $16,468.40. What…

A: Investment amount (PV) = $13,000Amount received after 8 years (FV) = 16,468.40Number of years = 8…

Q: You invest in a mutual fund that charges 3.8% front-end load, 0.75% in total annual fees, and a 3%…

A: Front end load is the amount of deduction at the time of purchase and back end load is the charges…

Q: Suppose you invest $2000 into a mutual fund that is expected to earn a rate of return of 11%. The…

A: Investment (PV) = $2000 Rate of return (r) = 11%

Q: suppose you have $5,000 in a mutual fund in your IRA. Suppose also that you put $4,000 into the…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: You have just won a lottery that pays out $2.25 million in a lump sum. If you invest this in a…

A: Present Value = pv = $2.25 millionRate of Return = r = 7.5%Time = t = 30 Years

Q: You plan to invest $20,000.00 today in an equity unit trust fund expected to pay an average return…

A: Concept. Future value = A ( 1+r)n Where, A = amount invested. r = interest rate n = time period.

Q: ose an investment will pay $21,000 in 19 years from now. If you can earn 16.35% interest compounded…

A: The today value will be the present value of future value considering the discount rate and period…

Q: An investment pays you $100 at the end of each of the next 3 years. The investment will then pay you…

A: Here,

Q: 2. You intend to invest $3,000 per year start that the last day of 2021 and do it for 20 years, how…

A: Future value of savings must be equal to the present value of future needs ,this is basic principle…

Q: assume that at the beginning of the year, you purchase an investment for $7,200 that pays $100…

A: Initial value=$7200Final value=$6800Annual income=$100

Q: Suppose that $18,000 is invested in a bond fund and the account grows to $23,344.74 in 5 yr. a. Use…

A: Continuously compounded interest rate is the interest which is calculated on the principal amount as…

Q: Suppose an investment will pay $11,000 in 26 years from now. If you can earn 13.30% interest…

A: MONTHLY COMPOUNDING RATE (13.30%/12) 1.108333333% YEARS (26*12) 312 PMT  0 FUTURE VALUE…

Q: 00 Stock 137 51 Bond (rF=3%) 103 100 103 Call (E=87) 50 1-year call option, S=100, E=87, r=3%…

A: Stock price today = 100Stock price at t=1 = 137 or 51Exercise price = 87Risk-free rate = 3%To find:…

Q: The current price of a stock is $19. In 1 year, the price will be either $26 or $16. The annual…

A: Call option would give opportunity to buy stock on expiration but there is no obligation to do that.…

Q: f you plan to invest for 5 years, what annual rate of return (i.e. gross ret) must the fund…

A: Information Provided: Expense Ratio = 0.5% CD interest = 3.5% Load of mutual fund = 4.5%

Q: Larry James is planning to invest $25,400 today in a mutual fund that will provide a return of 0.10…

A: We need to find the future value of investment of Mr.Larry James. Future value is the amount reccive…

Q: Consider an investment fund that starts out with £160,000. After one year, the value of the fund is…

A: Here,

Q: Suppose you invest $500 in a mutual fund today and $600 in one year. If the fund pays 9% annually,…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: Suppose you deposit $750 per month in a mutual fund that is expected to bear 13.5% interest…

A: Future value is an estimate of future cash flows ​​that may be received at a future date, discounted…

Q: You bought $5,000 worth of mutual funds with a redemption fee of 5 percent. If you sell within the…

A: Introduction: Mutual Fund Redemption fees are the fee charged by the mutual fund company from the…

Q: Fenway Athletic Club plans to offer its members preferred stock with a par value of $100 and an…

A: Preferred stock are stock which provides the holder with fixed dividend and have the priority over…

Q: Suppose you bought a bond with an annual coupon rate of 7.6 percent one year ago for $840. The bond…

A: a. Total Dollar Return The total dollar return on the investment over the past year can be broken…

Q: Suppose you are given the following cash flow stream. If the interest rate is 20 percent, what is…

A: The time value of money is an important concept in finance that recognizes the idea that a sum of…

Q: Consider an investment fund that starts out with £160,000. After one year, the value of the fund is…

A: Here,

Q: Interest rate (with changing years). Keiko is looking at the following investment choices and wants…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: Larry James is planning to invest $25,500 today in a mutual fund that will provide a return of 0.08…

A: Future Worth is value of current amount at future point of time. It is computed by compounding that…