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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