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 Vanguard Total Bond Market Index Mutual Vanguard 500 Index PIMCO Fund Total Return Rate of 15.83% 13.25% 2.77% 2.67% Return Турe Stock fund Stock fund Bond fund Bond fund How much would be accumulated after 25 years in a retirement account invested entirely in the Vanguard stock fund with payments of $320 per month? HINT [See Quick Example 1.] (Round your answer to the nearest cent.)
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 Vanguard Total Bond Market Index Mutual Vanguard 500 Index PIMCO Fund Total Return Rate of 15.83% 13.25% 2.77% 2.67% Return Турe Stock fund Stock fund Bond fund Bond fund How much would be accumulated after 25 years in a retirement account invested entirely in the Vanguard stock fund with payments of $320 per month? HINT [See Quick Example 1.] (Round your answer to the nearest cent.)
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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![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 | Fidelity Growth Company | Vanguard 500 Index | PIMCO Total Return | Vanguard Total Bond Market Index |
|------------------------------------|-------------------------|--------------------|--------------------|----------------------------------|
| Rate of Return | 15.83% | 13.25% | 2.77% | 2.67% |
| Type | Stock fund | Stock fund | Bond fund | Bond fund |
**Problem:**
How much would be accumulated after 25 years in a retirement account invested entirely in the Vanguard stock fund with payments of $320 per month? (Round your answer to the nearest cent.)
_Solution:_
$ [amount to be calculated]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F567b405c-a8ec-4133-a9f4-1b3e3fcbb4f8%2F57b6cdfb-31ab-4e0d-8644-0da4134dd87c%2Fwdm6q5q_processed.jpeg&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 | Fidelity Growth Company | Vanguard 500 Index | PIMCO Total Return | Vanguard Total Bond Market Index |
|------------------------------------|-------------------------|--------------------|--------------------|----------------------------------|
| Rate of Return | 15.83% | 13.25% | 2.77% | 2.67% |
| Type | Stock fund | Stock fund | Bond fund | Bond fund |
**Problem:**
How much would be accumulated after 25 years in a retirement account invested entirely in the Vanguard stock fund with payments of $320 per month? (Round your answer to the nearest cent.)
_Solution:_
$ [amount to be calculated]
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