Question
invest $50000 mutual fund fixed total annual return of 10% broker chargesa a 3% commission broked will receive 5% usingthe compound interest formula impact of
invest $50000 mutual fund fixed total annual return of 10% broker chargesa a 3% commission broked will receive 5% usingthe compound interest formula impact of the 3% commission rate over 10 years will amount to 45% and over 50 years will amount to a 53% difference compare 5% vs7% compound annually on the amount (A) over 50 years using principal (P) -$10000 calculate difference in the two amounts (A) for the same principalover 10 years what can you conclude from your analysis?
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Solution To calculate the impact of the 3 commission rate over 10 years we can use the compound interest formula A P1 rnnt Where A the future value of ...Get Instant Access to Expert-Tailored Solutions
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
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