1 Bob had $130,000 in the BFT Growth Fund when he retired at the end of 2003 At the end of 2004 he redeemed $10,500 Each year from 2005 through 2015 his redemption increased by 5 percent Sam receives his annual bonus at year end He invested $10,000 in the BFT Growth Fund at the end of 2003 Each year end from 2004 through 2015 he bought shares worth 5 percent more than he had added the previous year The annual returns for the BFT Growth Fund follow 2004 4 85 2009 51 29 2014 3 74 2005 38 65 2010 24 53 2015 2 88 2006 25 57 2011 20 48 2016 8 56 2007 33 73 2012 30 26 2008 45 09 2013 26 63 a What was the value of Bob's account at the end of 2016 Sam's account b What was the annualized return on the fund over the entire 13 year period c What annual return did Bob earn on his holdings of the fund How about Sam 1 Bob had $130,000 in the BFT Growth Fund when he retired at the end of 2003 At the end of 2004 he redeemed $10,500 Each year from 2005 through 2015 his redemption increased by 5 percent Sam receives his annual bonus at year end He invested $10,000 in the BFT Growth Fund at the end of 2003 Each year end from 2004 through 2015 he bought shares worth 5 percent more than he had added the previous year The annual returns for the BFT Growth Fund follow 2004 4 85 2009 51 29 2014 3 74 2005 38 65 2010 24 53 2015 2 88 2006 25 57 2011 20 48 2016 8 56 2007 33 73 2012 30 26 2008 45 09 2013 26 63 a What was the value of Bob's account at the end of 2016 Sam's account b What was the annualized return on the fund over the entire 13 year period c What annual return did Bob earn on his holdings of the fund How about Sam

Question

1  Bob had $130,000 in the BFT Growth Fund when he retired at the end of 2003  At the end of 2004 he redeemed $10,500  Each year from 2005 through 2015 his redemption increased by 5 percent  Sam receives his annual bonus at year end  He invested $10,000 in the BFT Growth Fund at the end of 2003  Each year end from 2004 through 2015 he bought shares worth 5 percent more than he had added the previous year  The annual returns for the BFT Growth Fund follow  2004 4 85 2009 51 29 2014 3 74 2005 38 65 2010  24 53 2015 2 88 2006 25 57 2011  20 48 2016 8 56 2007 33 73 2012  30 26 2008 45 09 2013 26 63 a  What was the value of Bob's account at the end of 2016  Sam's account  b  What was the annualized return on the fund over the entire 13 year period  c  What annual return did Bob earn on his holdings of the fund  How about Sam  1  Bob had $130,000 in the BFT Growth Fund when he retired at the end of 2003  At the end of 2004 he redeemed $10,500  Each year from 2005 through 2015 his redemption increased by 5 percent  Sam receives his annual bonus at year end  He invested $10,000 in the BFT Growth Fund at the end of 2003  Each year end from 2004 through 2015 he bought shares worth 5 percent more than he had added the previous year  The annual returns for the BFT Growth Fund follow  2004 4 85 2009 51 29 2014 3 74 2005 38 65 2010  24 53 2015 2 88 2006 25 57 2011  20 48 2016 8 56 2007 33 73 2012  30 26 2008 45 09 2013 26 63 a  What was the value of Bob's account at the end of 2016  Sam's account  b  What was the annualized return on the fund over the entire 13 year period  c  What annual return did Bob earn on his holdings of the fund  How about Sam

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1. Bob had $130,000 in the BFT Growth Fund when he retired at the end of 2003. At the end of 2004 he redeemed $10,500.

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