3.) Suppose that the S&P 500 will return 10% per year in the future. Suppose you save (and invest) $5,000 per year for the next 30 years.

a.) If you are able to earn the market rate of return of 10% per year, how much will you have after 30 years?

b.) If you pay a portfolio manager (who earns the 10% return) 2% per year (i.e., you earn 8% per year on your investments), how much will you have after 30 years?

c.) Subtracting your answer in part b.) above from your answer in part a.) above, how much (in future value dollars) did it cost you to pay the portfolio manager?

d.) What is the percentage reduction in the value of your investment portfolio (after 30 years) when comparing part b.) above to part a.) above?