Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Let\'s say you invest $130,000 today and $500 at the end of each month for the n

ID: 2808277 • Letter: L

Question

Let's say you invest $130,000 today and $500 at the end of each month for the next 10 years into a fund consisting of 50% stock and 50% bonds and hope for the best. What APR (assume monthly compounding) would the fund have to be earning in order to reach your $500,000 goal? 25. a. 9.65% . d. e. 13.2% 16.2% 140% 145% 170% g. Both venture capital (VC) firms and leveraged buyout (LBO) firms are types of (Select the best choice below)? 26. a. exchange-traded funds b. mutual funds c. money market funds d. hedge funds e. private equity firms Nike sneakers, costing $100 a pair are essentially the same (except for the Nike logo) as generic sneakers costing S35 a pair. Nike's ability to make a large profit on sneakers is an example of 27. a. inefficient capital markets. b. agency costs c. time value of money. d. product differentiation.

Explanation / Answer

25.

use excel function for this=RATE(nper,pmt,pv,fv)

periodic rate per month=RATE(10*12,-500,-130000,500000)=0.9221%

APR=0.9221%*12=11.1% is answer

26.

e. private equity firms

27.

d. product differentation

because Nike's logo and marketing stratgey makes it a superior product in minds of consumer

the above are answers..