Question: Please provide excel document explaining formula breakdowns A mutual fund has been advertising that, had you been depositing $250 per month in the fund over
Please provide excel document explaining formula breakdowns
A mutual fund has been advertising that, had you been depositing $250 per month in the fund over the last ten years you would have accumulated $85,000. Assuming these deposits were made at the beginning of the month over 120 months calculate the effective annual return of the fund. Hint: use Goal Seek to solve. The effective annual return can be set up in two ways: (1+monthlyreturn)121 : This is the compounded annual return (preferable since it makes allowance for the reinvestment of each month's earnings). 12 monthly return: This is the method often used by banks
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
