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 $ Type Rate of Return Fidelity Growth Company Stock fund 30.31% Vanguard 500 Index Stock fund 17.98% PIMCO Total Return Bond fund 3.63% Vanguard Total Bond Market Index Bond fund 3.10% For the past 15 years you have been depositing $400 per month in the Vanguard Total bond fund, and you have now transferred your current balance to the PIMCO bond fund, where you plan to continue depositing $400 per month until you retire in 20 years. How much can you anticipate having in the Investment when you retire? HINT [See Example 1.] (Round your answer to the nearest cent.) x
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 $ Type Rate of Return Fidelity Growth Company Stock fund 30.31% Vanguard 500 Index Stock fund 17.98% PIMCO Total Return Bond fund 3.63% Vanguard Total Bond Market Index Bond fund 3.10% For the past 15 years you have been depositing $400 per month in the Vanguard Total bond fund, and you have now transferred your current balance to the PIMCO bond fund, where you plan to continue depositing $400 per month until you retire in 20 years. How much can you anticipate having in the Investment when you retire? HINT [See Example 1.] (Round your answer to the nearest cent.) x
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter3: Data Visualization
Section: Chapter Questions
Problem 6P: The file MutualFunds contains a data set with information for 45 mutual funds that are part of the...
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