Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mary is 30 years old and has $ 20,000 in her investment account equally spread in two funds and plans to add additional $ 2000

  1. 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 :
  1. Current amount : $ 10,000
  2. Historical performance , 10 year average : 6.5 %
  3. $2000 added ever year
  • Fund B :
  1. Current amount : $ 10,000
  2. Historical performance , 10 year average : 5 .5 %
  3. $2000 added ever year
  • Calculate ( using 10 year average performance) amount in each fund, and total portfolio atend of 10 years, 20 years and 30 years

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Finance and Public Policy

Authors: Jonathan Gruber

4th edition

1429278455, 978-1429278454

More Books

Students also viewed these Finance questions