Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Finance problems thx! 3. Suppose a hedge fund earns 5% per quarter every quarter. a. What is the EAR on an investment in this fund?
Finance problems thx!
3. Suppose a hedge fund earns 5% per quarter every quarter. a. What is the EAR on an investment in this fund? b. If you need $1 million dollars in 3 years, how much do you have to invest in the fund today? c. If you invest $1 million today, how much money will you have in 3 years? d. If you invest $10,000 every quarter for 12 quarters, starting immediately (i.e., first investment at time 0, last investment 11 quarters from now), how much will you have at the end of 3 years? e. If you need $1 million dollars in 5 years, and you are going to invest the same amount every quarter for 12 quarters, starting in 1 year (i.e., the first investment is at the end of year 1, the last investment is at the end of the third quarter/beginning of the fourth quarter of year 4) how much do you have to invest? f. If you invest today, how long will it take to quadruple your moneyStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started