Investment Management and Future Value

This video tutorial demonstrates how to calculate the future value of a mutual fund using the compound interest formula. It provides two examples: the first involves a $1,000 investment with a 12.45% annual return minus a 2% fee over three years, resulting in a future value of $1,347.40. The second example involves a $5,000 investment with a 15% annual return minus a 5% fee over six years, resulting in a future value of $8,857.80. The video explains the necessary calculations and conversions to determine these values.

What is the main topic covered in this video?

• How to manage a budget

• How to save money

• How to invest in stocks

• How to calculate the future value of a mutual fund

In the first example, what is the annual rate of return before the management fee?

• 10.45%

• 12.45%

• 12.45%

• 12.45%

What is the management fee charged by the investment company in the first example?

• 2%

• 1%

• 3%

• 4%

How many years is the investment held in the first example?

• 5 years

• 4 years

• 3 years

• 2 years

What is the formula used to calculate the future value of the investment?

• Net Present Value

• Compound Interest Formula

• Simple Interest Formula

• Discounted Cash Flow

What is the adjusted rate of return after accounting for the management fee in the first example?

• 13.45%

• 11.45%

• 10.45%

• 12.45%

What is the approximate future value of the investment in the first example?

• $1,700.00

• $1,347.40

• $1,600.00

• $1,500.00

In the second example, what is the annual rate of return before the management fee?

• 10%

• 12%

• 15%

• 18%

What is the management fee charged by the investment company in the second example?

• 5%

• 4%

• 3%

• 6%

How many years is the investment held in the second example?

• 4 years

• 5 years

• 6 years

• 7 years