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28. Problem 5.30 (Reaching a Financial Goal) L Book Allison and Lesle, who are twins, just received $45,000 each for their 28th birthday. They
28. Problem 5.30 (Reaching a Financial Goal) L Book Allison and Lesle, who are twins, just received $45,000 each for their 28th birthday. They both have aspirations to became millionaires. Each plans to make a $5,000 annual contribution to her early retirement und her birthdas, beginning a year from today, Allison spened an account with the Safety First Bond Fund, a mutual fund that invests in high-quality bonds whose investors have earned 5% per year in the part. Lele isted in the each Fund, which is in small centy fed e tech stocks and whose investors have canned an average of 14% per year in the fund's relatively short history a. If the two women's funds sam the same returns in the future as in the past, heve did will each be when she becomes a mare? Do not round intermediate calculations And your answers to tw Mison: years b. How large woudt Allon's annual contributions have to become a millionaire at the same age as Leste,suming their expected returns are all not be calculation your awer to the seat cent c. Is rational irational for Allion to invest in the bond fund rather than in stocks? V. High expeded reuse the market stalers accompanied arancs for nuk than Le
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