Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following table shows the average returns for some of the largest mutual funds commonly found in retirement plans. (Assume end-timanth deposits and withdrawals and

image text in transcribed
image text in transcribed
The following table shows the average returns for some of the largest mutual funds commonly found in retirement plans. (Assume end-timanth deposits and withdrawals and more compounding, and assume that the quoted rate of return continues indefinitely Mutual Fund Fidelity Growth Company Vanguard 500 index PIHCO Total Return Vanguard Total Bond Market Index Rate of Return Type Stick and und For the past years been deporting 500 per month ICO Bond fund, and you have wedure walce to the to continue deporting 700 per motive in the white to the root) STS 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 Blond Market Index Rate of Retur 14.834 15.25% 2.77 2.679 Type Stock fund Stock fund Bond fund Bond fund For the past 25 years you have been depositing 5700 per month in the PIMCO bond fund, and you have now transferred your current balance to the Vanguard bond hund, where you plan to continue depositing $700 per month until you retire in 30 years. How much can you anticipate having in the investment when you retire? HINT (See Example 1.1 (Round your answer to the nearest cent.) $1645751 45 X

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

Surviving An IRS Tax Audit

Authors: Frederick W. Daily

3rd Edition

1413318649, 978-1413318647

More Books

Students also viewed these Accounting questions