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Help needed please. Must be in excel. EXERCISE 3.7 5. Mr. King invested $30,000 in the First Eagle fund in year 2004. He continued to

Help needed please. Must be in excel.image text in transcribed

EXERCISE 3.7 5. Mr. King invested $30,000 in the First Eagle fund in year 2004. He continued to invest in the same fund from 2005 to 2011as in the following schedule: Year 2005 $30,000 Year 2006 $50,000 Year 2007 $50,000 Year 2008 $150,000 Year 2011 $100,000 All the dividends distributed by the company from time to time were reinvested in the same fund. In year 2012 Mr. King received a report showing a total balance of $548,360 in his account. What is the internal Rate of return of Mr. King's investments in the mutual fund? Answer: 7% (Note: cash flows in 2009 and 2010 are 0.) 6. Assume that your bank pays 6% interest annually. Assume that you deposited $10,000 on 1/1/2001, withdrew $2,000 on 1/1/2002, and deposited $5,000 on 1/1/2003, and do nothing in year 2004: (2.1) what is your ending balance on 12/31/2001? (2.2) what would be your ending balance on 12/31/2002? (2.3) what would be your ending balance on 12/31/2003? (2.4) what would be the ending balance on 12/31/2004? Answers: $10600,$9116,$14962.96,$15,860.7376 7. Assume that you opened an account and invested $10,000 in a mutual fund on 1/1/2001, withdrew $2,000 from the account on 1/1/2002, and invested $5,000 on 1/1/2003 to the same account. Finally on 12/31/2004 you closed the account and received the amount of $15,860.7376. What is the Internal Rate of Return of you investment? Answer: 6%. (Please compare question 2 and 3 above.)

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