Question: You deposit the following at the end of each year into a growth mutual fund that earns 11 percent per year. Year Deposit 1 $4,000

You deposit the following at the end of each year into a growth mutual fund that earns 11 percent per year.

Year

Deposit

1

$4,000

2

3,500

3

2,500

4

2,000

5

1,700

$13,700


a. How much should the fund be worth at the end of five years? $17,859.28

b. How much interest will you have earned in total?

Step by Step Solution

★★★★★

3.38 Rating (173 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

a b 12441 3 5 Year Return 1100 De... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

498-B-F-E (963).docx

120 KBs Word File

Students Have Also Explored These Related Finance Questions!

Q:

A person deposits $1000 at the end of each year into an annuity earning 5% interest compounded annually? How many years are required for the balance to reach $30,539? After how many years will the...

Q:

The table lists the balances at the end of each year for a 15-year, $50,000 loan with an 8% interest rate. a. Construct a scatterplot using the data points (year, loan balance). b. Write a linear...

Q:

How much must be deposited at the end of each quarter for nine years to accumulate to $11 000 if interest is 4% compounded quarterly?

Q:

The questions are attached bellow and I would like help to solve them iPad '3 8:44 AM MBA 645A, Test 1 Dr. Wei Feng NAME: DATE: Part I - Multiple Choices (2 * 30 = 60 points) 1. Financial managers...

Q:

Wingate Company borrowed $90.000 on January 2, 2017. This amount plus accrued interest of 6% compounded annually will be repaid at the end of 3 years. What amount will Wingate repay at the end of the...

Q:

MANAGERIAL ACCOUNTING HANDOUT PROBLEM 12 Score Name Section Problem (10 points). SAPODILLA CORPORATION TIME VALUE OF MONEY SITUATIONS FOR ANALYSIS (1) Sapodilla Corporation has decided to begin...

Q:

MANAGERIAL ACCOUNTING HANDOUT PROBLEM 12 Score Name Section Problem (10 points). SAPODILLA CORPORATION TIME VALUE OF MONEY SITUATIONS FOR ANALYSIS (1) Sapodilla Corporation has decided to begin...

Q:

1. Consider the following information about three stocks: State of Probability Rate of Return if Economy of State State Occurs StockA Stock B ' Stock C Boom 0.35 0.24 0.36 0.55 a) What is the...

Q:

I need help on the 1065 partnership return. Its the one with Bilco Products. Thank you for whoever does. :) 2012 Edition Individuals', Corporation, Partnership, and Fiduciary Fact Patterns and Blank...

Q:

IM Me with price and any questions SIGNATURE PROJECT ACC432A June 2014 WARDENS' 2013 TAX RETURN CCH BOOKLET TITLED: 2014 Edition Individuals', Corporation, partnership, and Fiduciary Fact Patterns...

Q:

Identify the causes of loss that are covered under the following forms: a. Causes-of-loss basic form b. Causes-of-loss broad form c. Causes-of-loss special form

Q:

Callison had worked for the city for two years when he was diagnosed with deep anxiety reaction caused by stress at home and on the job. He used a lot of sick leave and was put on a Sick Abuse List....

Q:

1 . Sam is currently 3 0 years of age. He owns his own business, and wants to retire at the age of 6 0 . He has little confidence in the current Social Security system. He wants to retire with an...

Q:

Jerry Lopez works for Lightning Bolt Ltd. His annual salary is $100 000 and he is paid weekly. As part of his employment agreement, he is entitled to four weeks annual leave each year. He receives a...

Q:

What is working capital? How does it affect the financial projections of start-ups?

Q:

What are the most important costs that need to be considered in a new venture?

Q:

What are the relative strengths of top-down versus bottom-up revenue projections?

Q:

Points: 0 of 6 Save Assume that the sample is a simple random sample obtained from a normally distributed population of IQ scores of statistics professors. Use the table below to find the minimum...

Q:

Please complete questions and show work with problems please and thank you in advance 1. Determine whether the data described are continuous, discrete, nominal or ordinal: a) (2 points) Brands of...

Q:

First Simple Bank pays 9.2 percent simple interest on its investment accounts. First Complex Bank pays interest on its accounts compounded annually. Required: What rate should the bank set if it...