Question
You have $15,000 to invest and are contemplating two index funds. Both funds are designed to track the Wilshire 5000 index, a broad based stock
You have $15,000 to invest and are contemplating two index funds. Both funds are designed to track the Wilshire 5000 index, a broad based stock market index of publicly traded American corporations that is often used as a benchmark for the entirety of the U.S. stock market. The funds are similar in all respects except that fund A has an expense ratio of 0.02% and fund B has an expense ratio of 0.75%. Your investment horizon is 10 years. You expect the Wilshire 5000 index to return 8% annually.
Ignoring taxes, how much would you have with each option at the end of the 10 years?
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