In it's first 10 years, a mutual fund produced an average annual return of 19.17%. Assume...
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In
it's first 10 years, a mutual fund produced an average annual
return of 19.17%. Assume...
Let’s see how fees can hurt your investment strategy. Let’s assume that your mutual fund grows...
Let’s see how fees can hurt your investment strategy. Let’s assume that your mutual fund grows at an average rate of 5% per year—before subtracting the fees. Use the rule of 70 and round your answers to the nearest tenth of a year. a. How many years will it take for your money to double if fees are 0.5% per year? Doubling time:_______years. b. How many years will it take for your money to double if fees are 1.5% per...
1) You are 50 years old and proud of having $75,000 invested in a mutual fund...
1) You are 50 years old and proud of having $75,000 invested in a mutual fund earning an impressive 17% per year. You want to retire when you are 65 years old and are confident you'll reach your goal of $1,000,000 by then. Will you make it? If not, what yield would see that you do? 2) Jack and Jill want to retire when they accumulate $1,500,000 in their individual retirement funds. They figure that they can just live off...
Suppose an individual invests $50,000 in a load mutual fund for two years. The load fee...
Suppose an individual invests $50,000 in a load mutual fund for two years. The load fee entails an up-front commission charge of 2 percent of the amount invested and is deducted from the original funds invested. In addition, annual fund operating expenses (or 12b-1 fees) are 0.90 percent. The annual fees are charged on the average net asset value invested in the fund and are recorded at the end of each year. Investments in the fund return 5 percent each...
Suppose an individual invests $5,000 in a load mutual fund for two years. The load fee...
Suppose an individual invests $5,000 in a load mutual fund for two years. The load fee entails an up-front commission charge of 2 percent of the amount invested and is deducted from the original funds invested. In addition, annual fund operating expenses (or 12b-1 fees) are 0.75 percent. The annual fees are charged on the average net asset value invested in the fund and are recorded at the end of each year. Investments in the fund return 8 percent each...
Suppose an individual invests $40,000 in a load mutual fund for two years. The load fee...
Suppose an individual invests $40,000 in a load mutual fund for two years. The load fee entails an up-front commission charge of 3 percent of the amount invested and is deducted from the original funds invested. In addition, annual fund operating expenses (or 12b-1 fees) are 0.60 percent. The annual fees are charged on the average net asset value invested in the fund and are recorded at the end of each year. Investments in the fund return 5 percent each...
1. Your grandmother has invested $4000 in a mutual fund each year on your birthday (she...
1. Your grandmother has invested $4000 in a mutual fund each year on your birthday (she made her first payment when you turned 1 year old). The mutual fund has grown at an annual interest rate of 6.8%. How much is your account worth on the day of your 21st birthday immediately after your grandmother’s deposit? answer: 2. You set up a college fund in which you pay $4000 each year at the beginning of the year. How much money...
Suppose an individual invests $25,000 in a load mutual fund for two years. The load fee entails an up-front commission...
Suppose an individual invests $25,000 in a load mutual fund for two years. The load fee entails an up-front commission charge of 3 percent of the amount invested and is deducted from the original funds invested. In addition, annual fund operating expenses (or 12b-1 fees) are 0.85 percent. The annual fees are charged on the average net asset value invested in the fund and are recorded at the end of each year. Investments in the fund return 8 percent each...
Suppose that you invest $10,000 in mutual fund that earns an average return of 8.5% per...
Suppose that you invest $10,000 in mutual fund that earns an average return of 8.5% per year. How much will be in your account at the end of 20 years? (Round your answer to the nearest dollar and do not include the "$" sign in your answer. If your answer is $124.83, enter it as 125.)
The annual return of a well-known mutual fund has historically had a mean of about 10%...
The annual return of a well-known mutual fund has historically had a mean of about 10% and a standard deviation of 39%. Suppose the return for the following year follows a normal distribution, with the historical mean and standard deviation. a. What is the probability that you will lose money in the next year by investing in this fund? b. What is the probability that you will earn at least 25% in the next year? (no excel)
Your company is investing in a fund that is expected to earn 3% annual interest (compounded...
Your company is investing in a fund that is expected to earn 3% annual interest (compounded annually) for the first 4 years and 9% annual interest (compounded annually) for the next 6 years. If your company invests $1,000 each year for the first 5 years and $12,000 for the remaining 5 years, how much money will be in the fund after 10 years.
1) You are 50 years old and proud of having $75,000 invested in a mutual fund earning an impressive 17% per year. You want to retire when you are 65 years old and are confident you'll reach your goal of $1,000,000 by then. Will you make it? If not, what yield would see that you do? 2) Jack and Jill want to retire when they accumulate $1,500,000 in their individual retirement funds. They figure that they can just live off...
Suppose an individual invests $50,000 in a load mutual fund for two years. The load fee entails an up-front commission charge of 2 percent of the amount invested and is deducted from the original funds invested. In addition, annual fund operating expenses (or 12b-1 fees) are 0.90 percent. The annual fees are charged on the average net asset value invested in the fund and are recorded at the end of each year. Investments in the fund return 5 percent each...
Suppose an individual invests $25,000 in a load mutual fund for two years. The load fee entails an up-front commission charge of 3 percent of the amount invested and is deducted from the original funds invested. In addition, annual fund operating expenses (or 12b-1 fees) are 0.85 percent. The annual fees are charged on the average net asset value invested in the fund and are recorded at the end of each year. Investments in the fund return 8 percent each...
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