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.) Fidelity Growth Company Mutual Fund $ Rate of Return 14.83% Vanguard 500 Index 13.25% PIMCO Total Return 2.77% Vanguard Total Bond Market Index 2.67% Type Stock fund Stock fund Bond fund For the past 15 years you have been depositing $600 per month in the PIMCO bond fund, and you have now transferred your current balance to the Vanguard bond fund, where you plan to continue depositing $600 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.) Bond fund
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.) Fidelity Growth Company Mutual Fund $ Rate of Return 14.83% Vanguard 500 Index 13.25% PIMCO Total Return 2.77% Vanguard Total Bond Market Index 2.67% Type Stock fund Stock fund Bond fund For the past 15 years you have been depositing $600 per month in the PIMCO bond fund, and you have now transferred your current balance to the Vanguard bond fund, where you plan to continue depositing $600 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.) Bond fund
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
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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
Fidelity
Growth
Company
14.83%
Vanguard
500 Index
13.25%
PIMCO
Total Return
Stock fund
2.77%
Type Stock fund
For the past 15 years you have been depositing $600 per month in the PIMCO bond fund, and you have now transferred your current balance to the Vanguard bond fund, where you plan to continue depositing $600 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.)
Vanguard
Total Bond
Market Index
Bond fund
2.67%
Bond fund](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F82ef0ef6-c23e-4579-9980-5531f4011b7f%2Fd1027e96-1f69-43f7-bde5-85f136ca2a92%2Fip4ixhm_processed.png&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
Fidelity
Growth
Company
14.83%
Vanguard
500 Index
13.25%
PIMCO
Total Return
Stock fund
2.77%
Type Stock fund
For the past 15 years you have been depositing $600 per month in the PIMCO bond fund, and you have now transferred your current balance to the Vanguard bond fund, where you plan to continue depositing $600 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.)
Vanguard
Total Bond
Market Index
Bond fund
2.67%
Bond fund
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