Question: Help needed please. Must be in excel. EXERCISE 3.7 5. Mr. King invested $30,000 in the First Eagle fund in year 2004. He continued to

Help needed please. Must be in excel.Help needed please. Must be in excel. EXERCISE 3.7 5. Mr. King

EXERCISE 3.7 5. Mr. King invested $30,000 in the First Eagle fund in year 2004. He continued to invest in the same fund from 2005 to 2011as in the following schedule: Year 2005 $30,000 Year 2006 $50,000 Year 2007 $50,000 Year 2008 $150,000 Year 2011 $100,000 All the dividends distributed by the company from time to time were reinvested in the same fund. In year 2012 Mr. King received a report showing a total balance of $548,360 in his account. What is the internal Rate of return of Mr. King's investments in the mutual fund? Answer: 7% (Note: cash flows in 2009 and 2010 are 0.) 6. Assume that your bank pays 6% interest annually. Assume that you deposited $10,000 on 1/1/2001, withdrew $2,000 on 1/1/2002, and deposited $5,000 on 1/1/2003, and do nothing in year 2004: (2.1) what is your ending balance on 12/31/2001? (2.2) what would be your ending balance on 12/31/2002? (2.3) what would be your ending balance on 12/31/2003? (2.4) what would be the ending balance on 12/31/2004? Answers: $10600,$9116,$14962.96,$15,860.7376 7. Assume that you opened an account and invested $10,000 in a mutual fund on 1/1/2001, withdrew $2,000 from the account on 1/1/2002, and invested $5,000 on 1/1/2003 to the same account. Finally on 12/31/2004 you closed the account and received the amount of $15,860.7376. What is the Internal Rate of Return of you investment? Answer: 6%. (Please compare question 2 and 3 above.)

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