Individual B just received an inheritance of $100,000 from a relative. B is 25 years old and wants to allocate the money to an account for retirement at the age of 65 in 40 years. A brokerage firm has agreed to construct an asset portfolio that will yield 6% per year for the 40 year period. What will be the future value of the portfolio for B at time of retirement in 40 years.
Individual B just received an inheritance of $100,000 from a relative. B is 25 years old and wants to allocate the money to an account for retirement at the age of 65 in 40 years. A brokerage firm has agreed to construct an asset portfolio that will yield 6% per year for the 40 year period. What will be the future value of the portfolio for B at time of retirement in 40 years.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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