Mary is 30 years old and has $ 20,000 in her investment account equally spread in two funds and plans to add additional $ 2000 in each fund. ( 10 % of this grade)
Fund A :
Current amount : $ 10,000
Historical performance , 10 year average : 6.5 %
$2000 added ever year
Fund B :
Current amount : $ 10,000
Historical performance , 10 year average : 5 .5 %
$2000 added ever year
Calculate ( using 10 year average performance) amount in each fund, and total portfolio at end of 10 years, 20 years and 30 years