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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): $35,000 Government bond mutual fund (GB): $155,000 Large capital mutual fund (LC): $109,000 Small capital mutual fund (SC): $72,000 Real estate trust fund (RE): $85,000 Rachel and Richard believe they need at least $1,500,000 to retire. The money market account grows at 2.5% annually, the government bond mutual fund grows at 6.0% annually, the large capital mutual fund grows at 8.5% annually, the small capital mutual fund grows at 13.5% annually, and the real estate trust fund grows at 4.5% 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 $1,500,000 goal? ore years to reach $1,50 (Round to the nearest whole Rachel and Richard will need to invest their accounts for number.)
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