Mike and Emily each have invested $100,000 in an investment account. No other contributions will be made to their investment account. Both have the same goal; they each want their account to reach $3,000,000 at which time each will retire. Mike has his money invested in risk-free securities with an expected return of 12% compounded monthly. Emily has her money invested in a stock fund with an expected return of 15% compounded quarterly. How many years after Emily retires will Mike retire?

Mike and Emily each have invested $100,000 in an investment account. No other contributions will be made to their investment account. Both have the same goal; they each want their account to reach $3,000,000 at which time each will retire. Mike has his money invested in risk-free securities with an expected return of 12% compounded monthly. Emily has her money invested in a stock fund with an expected return of 15% compounded quarterly. How many years after Emily retires will Mike retire?

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter15: Mutual And Exchange Traded Funds

Section: Chapter Questions

Problem 1FPC

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