Question

Betty and Bob invest $1,000 in Cosmos Mutual Fund. After 25 years their account balance is...

Betty and Bob invest $1,000 in Cosmos Mutual Fund. After 25 years their account balance is $13,585.464.  Algebraically find the simple rate of return per annum and the effective compound rate of return and the per annum continuous rate of return.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Betty and Bob invest in separate accounts at the same time. Unfortunately Bob’s account decreases in...
Betty and Bob invest in separate accounts at the same time. Unfortunately Bob’s account decreases in value at a continuous rate per annum of magnitude 3%. Fortunately Betty’s account increases in value at a rate of 16% per annum compounded quarterly. If Betty initially invests 35% less than Bob then algebraically find how much time it will take for their accounts to be of equal value. Your answer should be stated in years and be accurate to 2 places after...
Betty and Bob deposit $1,000 at the end of March, June, September, and December for 5...
Betty and Bob deposit $1,000 at the end of March, June, September, and December for 5 years. At the end of 5 years the account balance is $29, 778.08. Using Newton’s Method with a table of several rows find the per annum rate of return compounded quarterly. Your answer should be correct to at least 3 places after the decimal point.
Betty and Bob a 2-year coupon bond with a face and maturity value of $1,000 and...
Betty and Bob a 2-year coupon bond with a face and maturity value of $1,000 and a coupon rate of 8% per annum payable semiannually and a yield to maturity of 10% per annum compounded semiannually. A. Algebraically find the price of the bond. Your final answer should be correct to 2 places after the decimal point. The price of the portfolio is __________________. B. Algebraically find the exact Macaulay Duration of the portfolio. Your final answer should be correct...
Betty and Bob Mutual Fund has generated the following rates of return for the last six...
Betty and Bob Mutual Fund has generated the following rates of return for the last six years respectively: .18, -.15, .30, .06, .24, .10 a. Compute the median. b. Compute the sample standard deviation. c. Compute the effective rate of return for the 6 year period.
Betty deposits $5,000 now and deposits $3,000 after 1 year and deposits $2,000 after 2 years....
Betty deposits $5,000 now and deposits $3,000 after 1 year and deposits $2,000 after 2 years. 3 years after the initial deposit her account balance is $12,713.74. Bob deposits $8,000 now and withdraws $2,500 after 1 year and deposits $1,000 after 2 years. 3 years after his initial deposit his account balance is $8,895.17. Bertha deposits $6,000 now and withdraws $1,500 after 1 year and withdraws $3,000 after 2 years. 3 years after her initial deposit her account balance is...
You invest $1,000 at the beginning of 2030 in a mutual fund. If in 2030 the...
You invest $1,000 at the beginning of 2030 in a mutual fund. If in 2030 the fund has a holding-period-return of -18.06%, what return in 2031 would be necessary for your investment to recover its original value?
Suppose you invest $100,000 in a mutual fund for 10 years. The fund earns 6% pretax...
Suppose you invest $100,000 in a mutual fund for 10 years. The fund earns 6% pretax per year, makes no annual distributions (and thus there is no income to be taxed each year) and you sell the fund at the end of the 10 years. You pay a 20% tax on capital gains and a 40% tax on ordinary income. What is the pre-tax total dollar accumulation at the end of 10 years? What is the after-tax total dollar accumulation...
You invest $135 in a mutual fund that grows 12 percent annually for three years. Then...
You invest $135 in a mutual fund that grows 12 percent annually for three years. Then the fund experiences an exceptionally bad year and declines by 25 percent. After the bad year, the fund resumes its 12 percent annual return for the next three years. a. What is the average percentage change for the seven years? b. If you liquidate the fund after nine years, how much do you receive? c. What is the annualized return on this investment using...
(i) You invest $135 in a mutual fund that grows 12 percent annually for three years....
(i) You invest $135 in a mutual fund that grows 12 percent annually for three years. Then the fund experiences an exceptionally bad year and declines by 25 percent. After the bad year, the fund resumes its 12 percent annual return for the next three years. a. What is the average percentage change for the seven years? b. If you liquidate the fund after nine years, how much do you receive? c. What is the annualized return on this investment...
Suppose you open a mutual fund account that is expected to provide a 9% return per...
Suppose you open a mutual fund account that is expected to provide a 9% return per year. If you invest $2,416 into this account right away and then invest $1,264 into it two years later, how much money will you have in total in the account 4 years later?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT