Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Four years ago Jonathan had started his saving for his dream holiday in Hawai by putting a lump sum of $20,000 into an investment portfolio.
Four years ago Jonathan had started his saving for his dream holiday in Hawai by putting a lump sum of $20,000 into an investment portfolio. The portfolio has been paying a rate of returns of 11.5% per year, compounding weekly.
Required:
- Calculate how much money has Jonathan accumulated by his investment portfolio now? (3 marks)
ANSWER: ** Answer box will enlarge as you type
- If the rate of return for this portfolio is only 10% per year, compounding monthly and Jonathan had obtained the same investment outcome after four years, how much should he have put in his initial investment? (4 marks)
ANSWER:
- If Jonathan would like to have totally $50,000 for his dream holiday and moves all the saving accumulated from current portfolio to another instrument that pays the interest rate of 15.5% per year, compounding annually. How long will it take for Johnathan to reach his target of $50,000 ? (4 marks)
Step 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