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): $38,000 Government bond mutual fund (GB): $145,000 Large capital mutual fund (LC): $103,000 Small capital mutual fund (SC): $75,000 Real estate trust fund (RE): $86,000 Rachel and Richard believe they need at least $2,400,000 to retire. The money market account grows at 3.5% annually, the government bond mutual fund grows at 5.5% annually, the large capital mutual fund grows at 9.0% annually, the small capital mutual fund grows at 13.5% annually, and the real estate trust fund grows at 4.5% 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 $2,400,000 goal?
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): $38,000 Government bond mutual fund (GB): $145,000 Large capital mutual fund (LC): $103,000 Small capital mutual fund (SC): $75,000 Real estate trust fund (RE): $86,000 Rachel and Richard believe they need at least $2,400,000 to retire. The money market account grows at 3.5% annually, the government bond mutual fund grows at 5.5% annually, the large capital mutual fund grows at 9.0% annually, the small capital mutual fund grows at 13.5% annually, and the real estate trust fund grows at 4.5% 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 $2,400,000 goal?
Chapter15: Mutual And Exchange Traded Funds
Section: Chapter Questions
Problem 5FPC
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![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): $38,000
Government bond mutual fund (GB): $145,000
Large capital mutual fund (LC): $103,000
Small capital mutual fund (SC): $75,000
Real estate trust fund (RE): $86,000
Rachel and Richard believe they need at least $2,400,000 to retire. The money market account grows at 3.5% annually, the government bond mutual fund grows at 5.5% annually, the large
capital mutual fund grows at 9.0% annually, the small capital mutual fund grows at 13.5% annually, and the real estate trust fund grows at 4.5% 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 $2,400,000 goal?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe3b0d586-cedd-4182-89ac-f70113e1ba7d%2F845a0d3d-a478-4198-aac3-cd9aa49b532b%2Fv7k5lrd_processed.png&w=3840&q=75)
Transcribed Image Text: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): $38,000
Government bond mutual fund (GB): $145,000
Large capital mutual fund (LC): $103,000
Small capital mutual fund (SC): $75,000
Real estate trust fund (RE): $86,000
Rachel and Richard believe they need at least $2,400,000 to retire. The money market account grows at 3.5% annually, the government bond mutual fund grows at 5.5% annually, the large
capital mutual fund grows at 9.0% annually, the small capital mutual fund grows at 13.5% annually, and the real estate trust fund grows at 4.5% 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 $2,400,000 goal?
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