Question 11 2 pts Assume that you invest $750 at the end of each quarter for the next 20 years into a mutual fund....

Question

Question

Answer 1

Answer #1

It is given that,

Quarterly deposit amount is $750.

Annual rate of interest is 5.25%. so, interest rate per quarter will be (5.25% ÷ 4) = 1.3125%.

Total number of payments will be 20 × 4 = 80.

The accumulated amount at the end of 20 years is calculated below:

Accumulated value = Quarterly payment = $750x (1+1.3125% 1.3125% = $750x/ 1.8381972 0.013125 = $750x140.0531241 = $ 105,040 (

Hence, the 2nd option is correct.

Answer 2

Similar Homework Help Questions

6) (2 pts) At the end of 2014 you invested $5000 into a mutual fund. You...

6) (2 pts) At the end of 2014 you invested $5000 into a mutual fund. You invested another $3,000 into the mutual fund at the end of 2015. You did not invest any money in 2016 or 2017 and by the end of 2018, the mutual fund investment was worth $11,900. What was the dollar weighted average annual return on your investment? (2 pts) An investment had an average return of 15% and a standard deviation of 20% over the...
in a mutual fund with a 7% load and expense ratio of 075%. You can Invest...

in a mutual fund with a 7% load and expense ratio of 075%. You can Invest instead in a bank an CD paying 2% interest. a. If you plan to Invest for 4 years, what annual rate of return must the fund portfollo earn for you to be better off in the fund than in the CD? Assume annual compounding of returns. (Do not round Intermediate calculations. Round your answer to 2 declmal places.) b. What annual rate of return...
You are going to invest in a stock mutual fund with a front-end load of 5.5...

You are going to invest in a stock mutual fund with a front-end load of 5.5 percent and an expense ratio of 1.59 percent. You also can invest in a money market mutual fund with a return of 2.7 percent and an expense ratio of 0.20 percent. If you plan to keep your investment for 2 years, what annual return must the stock mutual fund earn to exceed an investment in the money market fund? What if your investment horizon...

You invest $20 at the end of each year for the next 6 years at the...

You invest $20 at the end of each year for the next 6 years at the annual rate of 9%. What percentage of total interest is due to simple interest?
7) (2 pts) At the end of 2014 you invested $1000 into a mutual fund. You...

7) (2 pts) At the end of 2014 you invested $1000 into a mutual fund. You invested another $2,500 into the mutual fund at the end of 2015. You did not invest any money in 2016 and by the end of 2017, the mutual fund investment was worth $5,682. What was the dollar weighted average annual return on your investment? PM DIGI 2017 25000 5692 - 23.4% OOO
How much must you invest today in order to receive $10,000 at the end of each year for the next 8 years assuming you ca...

How much must you invest today in order to receive $10,000 at the end of each year for the next 8 years assuming you can earn 5 percent interest? Question 3 0.13 pts You invest $ 2,000 at the end of each year for the next 3 years. Calculate the value of the investment at the end of 3 years assuming you earn 6% interest.

How much must you invest today in order to receive $10,000 at the end of each year for the next 8 years assuming you ca...

How much must you invest today in order to receive $10,000 at the end of each year for the next 8 years assuming you can earn 5 percent interest? Question 3 0.13 pts You invest $ 2,000 at the end of each year for the next 3 years. Calculate the value of the investment at the end of 3 years assuming you earn 6% interest.
Question 3 0.13 pts You invest $ 2,000 at the end of each year for the...

Question 3 0.13 pts You invest $ 2,000 at the end of each year for the next 3 years. Calculate the value of the investment at the end of 3 years assuming you earn 6% interest.
You are considering an investment in a mutual fund with a 5% load and expense ratio...

You are considering an investment in a mutual fund with a 5% load and expense ratio of 0.1%. You can invest instead in a bank CD paying 2% interest a. If you plan to invest for 2 years, what annual rate of return must the fund portfolio earn for you to be better off in the fund than in the CD? Assume annual compounding of returns. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Annual rate...

A mutual fund manager expects her portfolio to earn a rate of return of 11% this...

A mutual fund manager expects her portfolio to earn a rate of return of 11% this year. The beta of her portfolio is 0.9. The rate of return available on risk-free assets is 4% and you expect the rate of return on the market portfolio to be 14%. What expected rate of return would you demand before you would be willing to invest in this mutual fund? Expected Rate of Return: %