Future value of a portfolio. Rachel and Richard want to know when their current portfolio will be sufficient for them to retire. They have the following balances in their portfolio: Money market account (MM): $37,000 Government bond mutual fund (GB): $150,000 Large capital mutual fund (LC): $103,000 Small capital mutual fund (SC): $76,000 Real estate trust fund (RE): $88,000 Rachel and Richard believe they need at least $1,900,000 to retire. The money market account grows at 2.0% annually, the government bond mutual fund grows at 5.5% annually, the large capital mutual fund grows at 8.5% annually, the small capital mutual fund grows at 12.0% annually, and the real estate trust fund grows at 3.5% annually. With the assumption that no more funds will be deposited into any of these accounts, how long will it be until they reach the $1,900,000 goal? Rachel and Richard will need to invest their accounts for or more years to reach $1,900,000. (Round to the nearest whole number.)

Future value of a portfolio. Rachel and Richard want to know when their current portfolio will be sufficient for them to retire. They have the following balances in their portfolio: Money market account (MM): $37,000 Government bond mutual fund (GB): $150,000 Large capital mutual fund (LC): $103,000 Small capital mutual fund (SC): $76,000 Real estate trust fund (RE): $88,000 Rachel and Richard believe they need at least $1,900,000 to retire. The money market account grows at 2.0% annually, the government bond mutual fund grows at 5.5% annually, the large capital mutual fund grows at 8.5% annually, the small capital mutual fund grows at 12.0% annually, and the real estate trust fund grows at 3.5% annually. With the assumption that no more funds will be deposited into any of these accounts, how long will it be until they reach the $1,900,000 goal? Rachel and Richard will need to invest their accounts for or more years to reach $1,900,000. (Round to the nearest whole number.)

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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You have $100,000 in your savings account and plan to retire with $750,000 in the bank in 40 years. You are hoping to achieve areasonable rate of return on your investments and want to know the target rate you should be looking for. Select one: a. 4.12 b. 3.14 c. 5.16 d. 6.13
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H4.
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