Reference no: EM131183616
Consider the following four investments.
a) You invest $3,000 annually in a mutual fund that earns 10 percent annually, and you reinvest all distributions. How much will you have in the account at the end of 20 years?
b) You invest $3,000 annually in a mutual fund with a 5 percent load fee so that only $2,850 is actually invested in the fund. The fund earns 10 percent annually, and you reinvest all distributions. How much will you have in the account at the end of 20 years? (Assume that all distributions are not subject to the load fee.)
c) You invest $3,000 annually in a no-load mutual fund that charges 12b-1 fees of 1 percent. The fund earns 10 percent annually before fees, and you reinvest all distributions. How much will you have in the account at the end of 20 years?
d) You invest $3,000 annually in no-load mutual fund that has a 5 percent exit fee. The fund earns 10 percent annually before fees, and you reinvest all distributions. How much will you have in the account at the end of 20 years?
Please provide work in Excel w/ formulas
In each case you invest the same amount ($3,000) every year; the fund earns the same return each year (10 percent), and you make each investment for the same time period (20 years). At the end of the 20 years, you withdraw the funds. Why is the final amount in each mutual fund different?
|
Furthermore firm has currently just one outstanding share
: Suppose that the assets of a firm are now priced at $100mil and are driven by a two-state binomial model and that the risk-free rate of interest is zero. Furthermore the firm has currently just one outstanding share. The asset return in the up-node a..
|
|
Evaluate research in motions keys success
: Evaluate research in motion's keys success.- What did the company do well and, In hindsight,what should it have done differently during its decade of extreme growth?
|
|
Shares remaining after recapitalization
: Dye Trucking raised $150 million in new debt and used this to buy back stock. After the recap, Dye's stock price is $5.5. If Dye had 60 million shares of stock before the recap, how many shares does it have after the recap? Enter your answer in milli..
|
|
Explain the effect of surface area on reaction rates
: Draw a graph to show how surface area of reactants (x-axis) affects reaction rate (y-axis). Label the graph correctly. Then discuss collision theory and explain the effect of surface area on reaction rates.
|
|
Consider the four investments
: You invest $3,000 annually in a mutual fund that earns 10 percent annually, and you reinvest all distributions. How much will you have in the account at the end of 20 years? You invest $3,000 annually in a mutual fund with a 5 percent load fee so tha..
|
|
Basic functions of the international banking system
: Evaluate the basic functions of the international banking system and financial market (such as bonds, equity, and money markets) and provide a plan for using these financial markets to finance your global operations
|
|
Describe an isomer-draw an isomer of hexene
: 1. Draw the structural formula of 3-hexene (C6H12). What class of organic molecule is 3-hexene? Describe an isomer. Draw an isomer of 3-hexene.
|
|
Describe strategies retailer could follow to target customer
: Home Depot is quite busy each morning because local contractors, home remodelers, and other small-business customers are buying the products they require for the day's projects.- Describe particular strategies these retailers could follow to target..
|
|
Determine the monthly break-even volume for willow company
: For a monthly volume of 300 tables, determine the total cost, total revenue, and profit. Determine the monthly break-even volume for the Willow Furniture Company.
|