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BUS405 / BUS 405 / Week 1 DQ 2 Money Market Funds

# BUS405 / BUS 405 / Week 1 DQ 2 Money Market Funds

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From Chapter 4, complete Problem 4: The Aqua Liquid Assets Money Market Mutual Fund has a NAV of \$1 per share. During the year, the assets held by this fund appreciated by 2.5 percent. If you had invested \$50,000 in this fund at the start of the year, how many shares would you own at the end of the year? What will the NAV of this fund be at the end of the year? Why? Remember to complete all parts of the question, show your work, and report the results of your analysis.

From Chapter 4, complete Problem 4: The Aqua Liquid Assets Money Market Mutual Fund has a NAV of \$1 per share. During the year, the assets held by this fund appreciated by 2.5 percent. If you had invested \$50,000 in this fund at the start of the year, how many shares would you own at the end of the year? What will the NAV of this fund be at the end of the year? Why? Remember to complete all parts of the question, show your work, and report the results of your analysis.

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# Week 1 Discussion Question 2 - Money Market Funds

From Chapter 4, complete Problem 4: The Aqua Liquid Assets Money Market Mutual Fund has a NAV of \$1 per share. During the year, the assets held by this fund appreciated by 2.5 percent. If you had invested \$50,000 in this fund at the start of the year, how many shares would you own at the end of the year? What will the NAV of this fund be at the end of the year? Why? Remember to complete all parts of the question, show your work, and report the results of your analysis.

00 each share. I treat this kind of account as an alternate account to my other savings account because it offers me the opportunity to get a higher interest rate than the ordinary interest rate given by checking or savings account. Furthermore.250 NAV = \$1.025) = 51. when the fund gets interest from the investment. For myself.000 Year End Final shares = 50. MMMF’s are similar to bank accounts. In this way. .Opening shares = 50.00 because a money market fund such as this one always has a net asset value of \$1.000(1. additional shares are provided to the fund owners.