Leonard started a systematic investment program by buying $300.00 worth of mutual funds on the first day of every month starting on June 1. Mutual funds are purchased in units. Leonardpurchased as many units as he could with his $300.00, including fractions of units. Unit prices for the first six months were $10.00, $10.20, $11.50, $9.75, $9.20, and $12.15 respectively. Completeparts (a) through (d) below.(a) What is the simple average of the unit prices?(Round to the nearest cent as needed.)

A mutual fund is a sort of investment vehicle that pools the funds of several investors to buy…

Answered: Leonard started a systematic investment…

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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Daniel invested $10,000 at time "0" in a mutual fund that guaranteed a return of 5% per year and after 5 years invested $20,000 in another guaranteed fund at 4 ½ % return. After 20 years since the first investment, how much money in total will he have in both funds? $116,984 O $65,239 O $61,000 $67, 215
Bradley set up a fund that would pay his family 3500 at the beginning of every month, in perpetuity.What was size of the investment in the fund if it was earning 5.50% compounded semi-annually?
Erin contributed $3,750 at the end of every 3 months into an RRSP fund earning 3.37% compounded quarterly for 12 years. a. What is the future value of the fund at the end of 12 years? $0.00 Round to the nearest cent
Mark Harris borrowed some money from his friend and promised to repay him $1,250, $1,340, $1,490, $1,560, and $1,560 over the next five years. If the friend normally discounts investment cash flows at 8.0 percent annually, how much did Mark borrow? (Round answer to 2 decimal places)
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?
On August 5th, 2013, Joseph invested $14,000 in a fund that was growing at 6% compounded semi-annually. a. Calculate the future value of the fund on March 15th, 2014. Round to the nearest cent b. On March 15th, 2014, the interest rate on the fund changed to 5% compounded monthly. Calculate the future value of the fund on March 26th, 2015. Round to the nearest cent
Ben invested P5000 in a fund at the beginning of every month for five years. The fund earning an interest rate of 5% compounded monthly. What was the total amount invested? a. None of the above b. P266, 057.50 c. P99, 378.77 d. P22, 729.75
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?
Henry is investing $44,080 at the end of each year in a fund that earns 6% interest. Click here to view the factor table. In how many years will the fund be at $370,000? (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to O decimal places, e.g. 15.) Years
What are the After-tax annualized returns from the following two funds if you invest $1000 in each of them? Assume: You invest for 4 years (hold investments till end of 4th year) and sell your shares at the beginning of 5th year. Tax rate is 25%. Fund B: Distributes 5% Distributed Income return per period. Provides 5% Capital Gain Return Per Period.
Steven Spear invested $14,000 today in a fund that earns 10% compounded annually. Click here to view factor tables. To what amount will the investment grow in 3 years? To what amount would the investment grow in 3 years if the fund earns 10% annual interest compounded semiannually? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.) Investment at 10% annual interest Investment at 10% annual interest, compounded semiannually $

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