A mid-career business manager has $400,000 saved for retirement and is planning to invest an additional $1,000 a month starting a month from now. He is planning to invest 60% of his current and new investments in a global stock fund and the remaining 40% in a bond fund.

If the stock fund has a compound annual growth rate (CAGR) of 8.6% and the bond fund has a CAGR of 2.5%, how much will his retirement investments be worth at the end of 25 years? (Hint: Calculate the FV of the stock investment and FV of the bond investment and add together.)

Group of answer choices

$2,830,197

$3,311,973

$3,605,227

$2,595,105

$3,139,345