Your financial advisor tells you that if you earn the historical rate of return on a certain mutual fund, then in three years your $20,000 will grow to $23,152.50. What rate of interest does your financial advisor expect you to earn? O-a.6 percent O b.5 percent Oc. 8 percent O d. 7 percent

Q: ird is trying to determine the interest rate he is receiving on an annuity that he initially…

A: Annuities are uniform annual payments that are paid annually out of money that is deposited…

Q: How much market value of each of the zeros will be necessary to fund the plan if you desire an…

A: Information Provided: Annuity amount = $1.4 million per year Interest rate = 8%

Q: You are considering investing $1,000 in an investment fund at the end of every quarter for the next…

A: As per the time value of money concept, a certain amount held today is worth more than holding the…

Q: S

A: The objective of this question is to calculate the present value of a future cash flow. The present…

Q: You manage a pension fund that will provide retired workers with lifetime annuities. You determine…

A: Bonds are used to finance projects and operations by corporations, cities, states, and sovereign…

Q: Find the FV of $1,000 invested to earn 12% after 6 years. Round your answer to the nearest cent.…

A: Present Value = $1,000 Interest Rate = 12% Time Period = 6 Years

Q: Suppose you invest $8,000 in a mutual fund in one year and $9,500 in two years. If the fund pays 7%…

A: Investment The process of investing money in financial assets in order to get a return is called…

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 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: You manage a pension fund that will provide retired workers with lifetime annuities. You determine…

A: A.Five Year Zero Coupon Bond= $12 million Twenty Year Zero Coupon Bond= $8 million B.Fave Value of…

Q: Assuming annual interest rates on comparable investments are 3,5%. What annual income could be…

A: Interest Rate= 3.5% Time Period of Annuity = 25 years Savings invested in annuity = 140,000

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: a. Calculate the present value of an investment that pays $5,000 in two years and $4,000 in five…

A: Present value illustrates the current value of a sum of money that will be received or paid in the…

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: You are targeting a retirement portfolio value of $2,500,000 in 20 years. You plan to make annual…

A: Using excel PMT function

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: If you invest P5,000 in a mutual fund extending a total annual return of 8% and you re-invest the…

A: The future value of the cash flow is the future worth of a cash flow at a certain rate of interest…

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: If you require a 12% annual return on your investments, would you prefer S20, 000 six years from…

A: To calculate the present value of $20,000 received six years from today, we use the formula for…

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: The four people below have the following investments. Invested Amount $ 11, 200 14,200 21,200 17,200…

A: Future value refers to the value of an investment or asset at a specific point in the future after…

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: 1. You've invested $1,000 in a mutual fund with a 5% front-end load, an expense ratio of 1% and a…

A: Investment amount = $ 1,000Expense ratio = 1%Front end load = 5%Back end load = 5%Annual Return = 8%

Q: Mean annual return (to 3 decimals) Stivers % Trippi %

A: First I'm going to list the formulas and then solve them in excel. We can determine the annual…

Q: The grade 10 learners at Stellenzicht Secondary School raised R5 800 at the cake sale. They want to…

A: Given, Amount raised is R5800 Bank A: 5.5% simple interest for 3 years Bank B: 4.5% compound…

Q: You are an employee that earns 20,000 per month. Assuming that you want to invest half of the amount…

A: The future value of the investment can be found by using the compound amount formula. The same is as…

Q: You manage a pension fund that will provide retired workers with lifetime annuities. You determine…

A:

Q: In an investor’s perspective, which among these has the best potential for your money to grow, using…

A: The interest charged on a loan or deposit is known as compound interest. The interest that is…

Q: Suppose an investment fund has an interest rate of 3.33% compounded quarterly. How much would an…

A: With number of compounding in a year (m) and annual stated rate (i), the annual effective rate is…

Q: If you require a 12% annual return on your investments, would you prefer S20, 000 six years from…

A: For a lump sum in the future:PV = FV / (1 + r)nFor an annuity:PV = PMT × (1+r) ×[1 - (1+r)-n] / r…

Q: Dhofar Insurance Company has made an investment in another company that will guarantee it a cash…

A: Given information: Cash flows: OMR 37,250 Discount rate : 15% Time period : 5 years

Q: if you invested $3,580 in a mutual fund and 14 years later it's worth $9,247, what annual rate of…

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

Q: You manage a pension fund that will provide retired workers with lifetime annuities. You determine…

A: Working Note#1 Calculation of present value of annuity: Present value of annuity=PayoutRate of…

Q: Suppose you invest $50 each month (starting today) into a mutual fund. You reinvest distributions.…

A: rate of return.  rate of return = Amount received - amount investedamount invested * 100

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

A: The annual rate of return is the return earned over the investment made throughout the year. It is…