If we were to invest $10,000 in an S&P 500 index fund, pay 0.2% annual fees, and add $100 a month to it for 40 years, receiving 10.4% annual returns, what, theoretically, would happen to our investment with 3.43% annual inflation? What would it be worth in terms of today's dollars? That's 10.4% - 0.2% - 3.43% = 6.77% over 40 years. Create an excelspreadsheet to show cash flow.
If we were to invest $10,000 in an S&P 500 index fund, pay 0.2% annual fees, and add $100 a month to it for 40 years, receiving 10.4% annual returns, what, theoretically, would happen to our investment with 3.43% annual inflation? What would it be worth in terms of today's dollars? That's 10.4% - 0.2% - 3.43% = 6.77% over 40 years. Create an excelspreadsheet to show cash flow.
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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Transcribed Image Text:Short Case Study with Excel
If we were to invest $10,000 in an S&P 500 index fund, pay 0.2% annual fees, and add $100 a month to it for 40
years, receiving 10.4% annual returns, what, theoretically, would happen to our investment with 3.43% annual
inflation? What would it be worth in terms of today's dollars? That's 10.4% - 0.2% - 3.43 % = 6.77% over 40
years. Create an excelspreadsheet to show cash flow.
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