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Were you to invest $45 each month into a mutual fund which averaged a 12.5% annual return, what would be the mutual fund account value

Were you to invest $45 each month into a mutual fund which averaged a 12.5% annual return, what would be the mutual fund account value after 12 years?



What would be your future account value (after-tax and after-inflation) if you invested $175 each month into a growth mutual fund for 20 years? Assume an average annual rate of return of 13 percent. Assume a combined federal and state income tax of 24% and an average inflation rate of 3.8% over the 20-year period.




What would be your future account value if you invested $175 each month into a growth mutual fund for 20 years? Assume an average annual rate of return of 13 percent.



Were you to invest $45 each month into a mutual fund which averaged a 12.5% annual return, what would be the mutual fund account value after 12 years after taxes and inflation? Assume a combined federal and state income tax of 24% and an average inflation rate of 4% over the 12-year period.


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SOLUTIONS To calculate the future account value after taxes and inflation we need to take into account the effects of both factors on the investment Lets calculate the values for each scenario 1 Inves... blur-text-image

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