Question
Future value of a portfolio. Rachel and Richard want to know when their current portfolio will be sufficient for them to retire. They have the
Future value of a portfolio. Rachel and Richard want to know when their current portfolio will be sufficient for them to retire. They have the following balances in their portfolio:
Money market account (MM):$39,000
Government bond mutual fund (GB):$134,000
Large capital mutual fund (LC): $112,000
Small capital mutual fund (SC):$65000
Real estate trust fund (RE):$91000
Rachel and Richard believe they need at least
$$2,350,000 to retire. The money market account grows at 2.3% annually, the government bond mutual fund grows at 5.6% annually, the large capital mutual fund grows at 9.4% annually, the small capital mutual fund grows at 12.2% annually, and the real estate trust fund grows at 4.3 annually. With the assumption that no more funds will be deposited into any of these accounts, how long will it be until they reach the $2,350,000 goal?
Rachel and Richard will need to invest their accounts for enter your response here or more years to reach
$2,350,000
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