8.You save $2000 a year into a 401(k) account that you invest in
a mutual fund...
8.You save $2000 a year into a 401(k) account that you invest in
a mutual fund earning 9% per year. You plan to retire in 35 years.
How much money will you have in your account at retirement?
You invest $1000 in a mutual fund. You expect that the fund will
earn a 8% return annually before expenses (~this is how much the
fund's assets go up). You have a choice between purchasing class A
mutual fund shares with a front-end load of 4% and no expenses or
class C mutual fund shares with no loads but a 1% 12b-1 fee. What
is your investment horizon if you are indifferent between these
two? (Round to the nearest whole...
Suppose that you invest $5,000 in a mutual fund at the end of
each year for the next 30 years. This period of time is your
planned holding period. You intend to leave these contributions and
any fund distributions earned in the account until the end of your
holding period. Your forecast rate of return on this mutual fund is
9% per year, compounded annually.What is the forecast value of your account at the end of your
holding period?Round your...
You have $15,000 to invest in a mutual fund. You choose a fund
with a 3.5% front load, a 1.75% management fee, and a 0.5% 12b-1
fee. Assume that the management and 12b-1 fees are charged on
year-end assets for simplicity. The gross annual return on the
fund's shares was 12.50%. What was your net annual rate of return
to the nearest basis point?
mutual funds and choose a fund in which you might like to
invest.
Identify this fund and explain why you are interested.
Be sure to address such issues as past
returns, expected future returns, the
amount of fees and expenses, and why its
investment objectives are attractive to you.
A 401(k) is a retirement savings plan sponsored by an employer.
It lets workers save and invest a piece of their paycheck before
taxes are taken out. Taxes aren’t paid until the money is withdrawn
from the account. 401(k) plans, named for the section of the tax
code that governs them, arose during the 1980s as a supplement to
pensions. Most employers used to offer pension funds. Pension funds
were managed by the employer and they paid out a steady...
3. You happen to have $2,000 in a bank account,
$12,800 in a 401(k) plan at work, a fully owned car with a current
value of $8,000, and a house that you purchased for $250,000 that
has a current market value of $378,000. The current balance of your
home mortgage is $121,000, you have one credit card with a $5,000
balance, and a school loan with a balance of $67,000. What is your
current net worth?
You have found a mutual fund that you would like to invest in
that will earn 5% annually. If you invest $1000 each year for the
next 10 years, how much will you have at the end of those 10 years,
approximately?
$18,753
$10,000
$12,578
$1,628
You do not need a lot of money to invest in a mutual fund.
However, if you decide to put some money into an investment, you
are usually advised to leave it in for (at least) several years.
Why? Because good years tend to cancel out bad years, giving you a
better overall return with less risk. To see what we mean, let's
use a 3-year moving average on the Calvert Social Balanced
Fund (a socially responsible fund).
Year
1...
Suppose you invest $100,000 in a mutual fund for 10 years. The
fund earns 6% pretax per year, makes no annual distributions (and
thus there is no income to be taxed each year) and you sell the
fund at the end of the 10 years. You pay a 20% tax on
capital gains and a 40% tax on ordinary income.
What is the pre-tax total dollar accumulation at the end of 10
years?
What is the after-tax total dollar accumulation at...
Suppose you invest $1000 in an account paying 8% interest per year. a. What is the balance in the account after 3 years? How much of this balance corresponds to “interest on interest”