) At the end of one year, how much will Alex and Spenser have? b) If Alex and Spenser leave their investments in place for 30 years, with annual compounding of the interest, how much more will Alex have than Spenser at the end of the 30-year period?
) At the end of one year, how much will Alex and Spenser have? b) If Alex and Spenser leave their investments in place for 30 years, with annual compounding of the interest, how much more will Alex have than Spenser at the end of the 30-year period?
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter17: Financial Markets
Section: Chapter Questions
Problem 40P: Many retirement funds charge an administrative fee each year equal to 0.25% on managed assets....
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5. Suppose Alex and Spenser each invest $5,000 in the same stock. Alex invests directly and earns 5% a year. Spenser uses a retirement fund, which charges an administrative fee equal to 0.25% on managed assets, and earns 4.75%.
a) At the end of one year, how much will Alex and Spenser have?
b) If Alex and Spenser leave their investments in place for 30 years, with annual compounding of
the interest, how much more will Alex have than Spenser at the end of the 30-year period?
a) At the end of one year, how much will Alex and Spenser have?
b) If Alex and Spenser leave their investments in place for 30 years, with annual compounding of
the interest, how much more will Alex have than Spenser at the end of the 30-year period?
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