A mutual fund had returns of 12% compounded monthly in the first year, 18% compounded annually...
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A mutual fund had returns of 12% compounded monthly in the first year, 18% compounded annually in the second year and 4% compounded quarterly in the third year. a. What would a $ 1000 investment 3 years ago be worth today? b. What was the average nominal rate (compounded monthly) of return earned? c. The fund lost $100.00 in the fourth year - what was the average effective rate of return for the four years? A mutual fund had returns of 12% compounded monthly in the first year, 18% compounded annually in the second year and 4% compounded quarterly in the third year. a. What would a $ 1000 investment 3 years ago be worth today? b. What was the average nominal rate (compounded monthly) of return earned? c. The fund lost $100.00 in the fourth year - what was the average effective rate of return for the four years?
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Answer rating: 100% (QA)
A To find the value of a 1000 investment after 3 years we need to apply the compound interest formul... View the full answer
Related Book For
College Mathematics for Business Economics Life Sciences and Social Sciences
ISBN: 978-0321614001
12th edition
Authors: Raymond A. Barnett, Michael R. Ziegler, Karl E. Byleen
Posted Date:
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