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Solve the following using the appropriate TABLE. Glenroy Williams owns shares of Seprod Ltd, a mutual fund. He is dollar-cost-averaging, that is he is putting
Solve the following using the appropriate TABLE. Glenroy Williams owns shares of Seprod Ltd, a mutual fund. He is dollar-cost-averaging, that is he is putting an equal amount monthly at the start of each month in his brokerage account. Glenroy who is 25 feels that he is young enough to ride out the swings in the market. 1. Presently he is saving $1250 per quarter and will continue to do so until age 35. If the annualized return continues to be 12%, how much will he have then? (7 POINTS) 2. If he decides to let his money accumulate without making additional quarterly deposits, how much will he have at age 50 if the mutual fund returns 10% and compounding takes place semiannually? (3 POINTS)
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