Tommy Boy is planning to buy a house in four years. He is looking to invest $25,400 today in an index mutual fund that will provide him a retum of 115 percent, compounded annually. How much will he have at the end of four years?

Tommy Boy is planning to buy a house in four years. He is looking to invest $25,400 today in an index mutual fund that will provide him a retum of 115 percent, compounded annually. How much will he have at the end of four years?

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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Question

Tommy Boy is planning to buy a
house in four years. He is looking to
invest $25,400 today in an index
mutual fund that will provide him a
retum of 115 percent, compounded
annually. How much will he have at
the end of four years?

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