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The following table shows the average returns for some of the largest mutual funds commonly found in retirement plans. (Assume end-of-month deposits and withdrawals and
The following table shows the average returns for some of the largest mutual funds commonly found in retirement plans. (Assume end-of-month deposits and withdrawals and monthly compounding, and assume that the quoted rate of return continues indefinitely.) Mutual Fund Fidelity Growth Company Vanguard 500 Index PIMCO Total Return Vanguard Total Bond Market Index Rate of Return 15.83% 14.25% 3.77% 3.67% Type Stock fund Stock fund Bond fund Bond fund For the past 25 years you have been depositing $600 per month in the Vanguard bond fund, and you have now transferred your current balance to the PIMCO bond fund, where you plan to continue depositing $600 per month until you retire in 30 years. How much can you anticipate having in the investment when you retire? HINT (See Example 1.] (Round your answer to the nearest cent.) $
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