5. You are looking into developing your first investment portfolio. After assessing your risk tolerance, you believe that an 80/20 allocation of stocks and bonds, respectively, is where you want to begin. You believe that 7% is what stocks will return over the next ten years, and 4% is what you expect to return in your bond portfolio. If you invest $400/month for the next fifteen years, what will your portfolio be worth?

(assume monthly compounding)

		$116,483
		$109,579
		$154,854
		$120,378

6.

At 35 years old, you have an investment portfolio of $150,000. You are looking into adjusting the allocation of your investments for both your existing portfolio and your future contributions. It is currently at an 80/20 allocation, but now you want to adjust to a 70/30 allocation. You believe that 8% is what stocks will return over the next fifteen years, and 4% is what you expect to return in your bond portfolio. If you invest $700/month for the next fifteen years, what will your portfolio be worth?

(assume monthly compounding)

		$598,652
		$632,840
		$724,248
		$666,051