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 $ Rate of Return Туре Fidelity Growth Company 14.83% Vanguard 500 Index 14.25% Stock fund Stock fund PIMCO Total Return 3.77% Bond fund Vanguard Total Bond Market Index 2.67% Bond fund How much would be accumulated after 30 years in a retirement account invested entirely in the Fidelity stock fund with payments of $200 per month? HINT [See Quick Example 1.] (Round your answer to the nearest cent.)
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 $ Rate of Return Туре Fidelity Growth Company 14.83% Vanguard 500 Index 14.25% Stock fund Stock fund PIMCO Total Return 3.77% Bond fund Vanguard Total Bond Market Index 2.67% Bond fund How much would be accumulated after 30 years in a retirement account invested entirely in the Fidelity stock fund with payments of $200 per month? HINT [See Quick Example 1.] (Round your answer to the nearest cent.)
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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![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
$
Rate of
Return
Type
Fidelity
Growth
Company
14.83%
Vanguard
500 Index
14.25%
Stock fund Stock fund
PIMCO
Total Return
3.77%
Bond fund
Vanguard
Total Bond
Market Index
2.67%
Bond fund
How much would be accumulated after 30 years in a retirement account invested entirely in the Fidelity stock fund with
payments of $200 per month? HINT [See Quick Example 1.] (Round your answer to the nearest cent.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffaf78b86-5cff-4f43-a30f-ea8852193163%2F10cb035c-5872-4faa-9403-3a5672e96d43%2Fd4nht0t_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
$
Rate of
Return
Type
Fidelity
Growth
Company
14.83%
Vanguard
500 Index
14.25%
Stock fund Stock fund
PIMCO
Total Return
3.77%
Bond fund
Vanguard
Total Bond
Market Index
2.67%
Bond fund
How much would be accumulated after 30 years in a retirement account invested entirely in the Fidelity stock fund with
payments of $200 per month? HINT [See Quick Example 1.] (Round your answer to the nearest cent.)
Expert Solution
Step 1: Given information:
- Rate of return = 14.83%
- Number of years = 30 years
- Monthly payment = $200
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