Question

Suppose you are committed to owning a $193152 Ferrari. If you believe your mutual fund can...

Suppose you are committed to owning a $193152 Ferrari. If you believe your mutual fund can achieve a 13.4 percent annual rate of return and you want to buy the car in 10 years, how much must you invest today? Suppose you are committed to owning a $193152 Ferrari. If you believe your mutual fund can achieve a 13.4 percent annual rate of return and you want to buy the car in 10 years, how much must you invest today? (Round time value factors to 6 decimal places and final answer to the nearest dollar amount.)

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

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
Suppose you are committed to owning a $250,000 Ferrari and you have $100,000 now. If you...
Suppose you are committed to owning a $250,000 Ferrari and you have $100,000 now. If you believe your mutual fund can achieve a 12 percent annual rate of return and you are able to save $1000 per month, how long you will have to wait for buying the car? A. 3.5 years B. 4.7 years C. 5.3 years D. 8.6 years
Suppose you are committed to owning a $250,000 Ferrari and you have $100,000 now. If you...
Suppose you are committed to owning a $250,000 Ferrari and you have $100,000 now. If you believe your mutual fund can achieve a 12 percent annual rate of return and you are able to save $1000 per month, how long you will have to wait for buying the car? A. 5.3 years B. 3.5 years C. 8.6 years D. 4.7 years
In this part, calculate the present values. Use the Excel PV function to compute the present...
In this part, calculate the present values. Use the Excel PV function to compute the present values. You are committed to owning a $200,000 home. If you believe your mutual fund can achieve an annual return of 10 percent, and you want to buy the home in 15 years, how much must you invest today? Calculate the present values in the table below using the PV Excel function. Future value Years Interest rate Present value $19,500 16 6% ? $47,390...
You are considering an investment in a mutual fund with a 4% load and an expense...
You are considering an investment in a mutual fund with a 4% load and an expense ratio of 0.5%. You can invest instead in a bank CD paying 6% interest. a. If you plan to invest for two 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. b. How does your answer change if you plan to invest for six...
You are going to invest in a stock mutual fund with a front-end load of 5...
You are going to invest in a stock mutual fund with a front-end load of 5 percent and an expense ratio of 1.57 percent. You also can invest in a money market mutual fund with a return of 2.6 percent and an expense ratio of 0.30 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 are going to invest in a stock mutual fund with a front-end load of 3...
You are going to invest in a stock mutual fund with a front-end load of 3 percent and an expense ratio of 1.5 percent. You also can invest in a money market mutual fund with a return of 2.2 percent and an expense ratio of 0.30 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...
Part 2: Present Value In this part, calculate the present values. Use the Excel PV function...
Part 2: Present Value In this part, calculate the present values. Use the Excel PV function to compute the present values. You are committed to owning a $200,000 home. If you believe your mutual fund can achieve an annual return of 10 percent, and you want to buy the home in 15 years, how much must you invest today? (7 Points) Calculate the present values in the table below using the PV Excel function. (7 Points) Future value Years Interest...
You are considering an investment in a mutual fund with a 5% load and an expense...
You are considering an investment in a mutual fund with a 5% load and an expense ratio of 0.85%. You can invest instead in a bank CD paying 7% interest. a. If you plan to invest for two 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...
You are considering an investment in a mutual fund with a 4% load and an expense...
You are considering an investment in a mutual fund with a 4% load and an expense ratio of 0.5%. You can invest instead in a bank CD paying 6% interest. a. If you plan to invest for two 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.) b....
You are considering an investment in a mutual fund with a 5% load and expense ration...
You are considering an investment in a mutual fund with a 5% load and expense ration of 0.5%. You can invest in a bank CD paying 3% interest. A. If you plan to invest for 4 years, what annual rate of return must the fund portfolio earn fot you to be better offin 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 of return__________% B....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT