Ask Question
BusinessBusiness
2 June, 00:47

Rodney Cashman has been investing $2,000 quarterly for the past 18 years in an equity mutual fund. How much is the fund worth now assuming he has earned 11.5% compounded quarterly on his investment?

+3
Answers (1)
  1. 2 June, 01:17
    0
    Rodney Cashman's fund is worth $ 465,862.95 after investing for the past 18 years.

    Explanation:

    Given: Number of periods - 18 years * 4 quarters = 72

    Periodic payment - $2,000

    Interest Rate - 11.5%

    Formula: FV of Annuity = p [ (1 + r/m) n-1 / (r/m) ]

    Where:

    P - Periodic Payment

    r - interest rate

    n - number of periods

    m - compounding period

    FV of Annuity = $ 465,862.95
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Rodney Cashman has been investing $2,000 quarterly for the past 18 years in an equity mutual fund. How much is the fund worth now assuming ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
When you must deliver bad news to one person or a small group, you should usually Group of answer choices address the issue in a department meeting. send an anonymous letter. wait at least one week so that you can formulate your thoughts.
Answers (1)
Advancements in technology alter the way jobs are performed but do not alter the physical and social environments of the workplace. True False
Answers (1)
One way the consumer price index (cpi) differs from the gdp chain price index is that the cpi: a. includes separate market baskets of goods and services for both base and current years. b. includes only goods and services bought by
Answers (1)
Net Present Value Analysis Anderson Company must evaluate two capital expenditure proposals. Anderson's hurdle rate is 12%. Data for the two proposals follow.
Answers (1)
While Fun Frames incurs a cost of $12 for a pair of eyeglasses, Highwire, its competitor, manufactures a pair of glasses at $10. Both the companies are able to sell their glasses for a maximum of $30 per pair.
Answers (1)
New Questions in Business
Which of the following groups on the Insert tab contain the command to add WordArt to a publication? Illustrations Text Links Header & Footer
Answers (1)
Avicorp has a $10 million debt issue outstanding, with a 6% coupon rate. The debt has semiannual coupons, the next coupon is due in six months, and the debt matures in five years. It is currently priced at 95% of par value. a.
Answers (1)
In the United States, you can own anything you want and decide what you want to do with it, as long as it does not violate the law. This describes the principle of
Answers (1)
High value-added per employee is associated with: a. capital intensive industries. b. labor intensive industries. c. the shoe industry in 1860. d. the use of unskilled labor.
Answers (1)
How were the earliest benefits of the industrial revolution distributed between Factory owners and workers?
Answers (1)
Home » Business » Rodney Cashman has been investing $2,000 quarterly for the past 18 years in an equity mutual fund. How much is the fund worth now assuming he has earned 11.5% compounded quarterly on his investment?
Sign Up Forgot Password?