Question
Investment Class Average Return Small Stocks 17% Large Stocks 12% Long-Term Corporate Bonds 7% Long-Term Government Bonds 6% US Treasury Bills 3% Money Market 1%
Investment Class | Average Return |
Small Stocks | 17% |
Large Stocks | 12% |
Long-Term Corporate Bonds | 7% |
Long-Term Government Bonds | 6% |
US Treasury Bills | 3% |
Money Market | 1% |
1. Janet just got engaged and is now saving money for her wedding. She has $1,000 and can save a maximum of $200 per month. They want to get married in about a year. For this investment horizon what type of investment would you recommend?
Use the table below to find out what the wedding budget should be.
N | I/Y | PV | PMT | FV |
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2. Mark has decided to start saving for retirement. He has 15 years until retirement and would like to retire a millionaire. His advisor has told him that he should invest 50% in large company stocks and 50% in long-term corporate bonds. How much does he need to invest each month to retire with $1,000,000.
N | I/Y | PV | PMT | FV |
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