Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Part 2: Investments (15 points) Another component of financial security is planning for retirement, one of the ways you can save is mutual funds, otherwise

image text in transcribed
Part 2: Investments (15 points) Another component of financial security is planning for retirement, one of the ways you can save is mutual funds, otherwise known as 401K retirement accounts. Below is a snapshot of two mutual funds. I want you to compute the interest rate on each investment over time period 2011-2020 that this table illustrates. So, here are the principle (P) or initial investments for each Massachusetts Mutual Fund - $12,400.00 The Growth Fund of America- $5,000.00 Here are what each investment is currently worth (F): Massachusetts Mutual Fund - $25,550 The Growth Fund of America - $12,910 a. To compute the average rate for both investments *7, use the formula from 5.2: F = P(1+1)". Don't forget to convert *7 and "n to monthly. Complete the table showing all work. Massachusetts Mutual Fund The Growth Fund of America 2014 2016 Zoll 2011 2012 2012 | 2013 2013 2014 2015 2015 2016 2017 2017 2018 2018 2010 2014 2020 2020 b. Now, moving forward how long will it take for the sum of the two investments $368,410 to reach $150,000 using the average of the two rates which is 9.4%? Use the compound yearly formula and solve for n. A = P(1 + i)". You will only need a single answer here

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_2

Step: 3

blur-text-image_3

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

Accounting Regulation In Europe

Authors: McLeay Stuart

1st Edition

0333694600, 9780333694602

More Books

Students also viewed these Accounting questions

Question

Examine various types of executive compensation plans.

Answered: 1 week ago

Question

1. What is the meaning and definition of banks ?

Answered: 1 week ago

Question

2. What is the meaning and definition of Banking?

Answered: 1 week ago

Question

3.What are the Importance / Role of Bank in Business?

Answered: 1 week ago