Mr. King invested $30,000 in the First Eagle fund in year 2004. He continued to invest in the same fund from 2005 to 201 las in the following schedule: Year 2005 $30,000 Y ear 2006 $50,000 Year 2007 $50,000 Year 2008 $150,000 Year 2011 $100,000 All the dividends distributed by the company from time to time were reinvested in the same fund. In year 2012 Mr. King received a report showing a total balance of $548,360 in his account. What is the internal Rate of return of Mr. King's investments in the mutual fund? Answer: 7% (Note: cash flows in 2009 and 2010 are 0.) Show work in Excel
Mr. King invested $30,000 in the First Eagle fund in year 2004. He continued to invest in the same fund from 2005 to 201 las in the following schedule: Year 2005 $30,000 Y ear 2006 $50,000 Year 2007 $50,000 Year 2008 $150,000 Year 2011 $100,000 All the dividends distributed by the company from time to time were reinvested in the same fund. In year 2012 Mr. King received a report showing a total balance of $548,360 in his account. What is the internal Rate of return of Mr. King's investments in the mutual fund? Answer: 7% (Note: cash flows in 2009 and 2010 are 0.) Show work in Excel
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Mr. King invested $30,000 in the First Eagle fund in year 2004. He continued to invest in the same fund from 2005 to 201 las in the following schedule:
Year 2005
$30,000
Y ear 2006
$50,000
Year 2007
$50,000
Year 2008
$150,000
Year 2011
$100,000
All the dividends distributed by the company from time to time were reinvested in the same fund. In year 2012 Mr. King received a report showing a total balance of $548,360 in his account. What is the internal Rate of return of Mr. King's investments in the mutual fund? Answer: 7% (Note: cash flows in 2009 and 2010 are 0.)
Show work in Excel
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