Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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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 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
14.83% 14.25% 2.77% 2.67%
Type Stock fund Stock fund Bond fund Bond fund
How much would be accumulated after 35 years in a retirement account invested entirely in the Vanguard stock fund with payments of $340 per month? HINT [See Quick Example 1.] (Round your answer to the nearest cent.)
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