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 Vanguard PIMCO 500 Index Total Return Total Bond Market Index Rate of Return 15.83% 14.25% 3.77% 3.67% Type Stock fund Stock fund Bond fund Bond fund For the past 25 years you have been depositing $500 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 $500 per month until you retire in 30 years. How much can you anticipate having in the investment when you retire? HINT [See 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.) Mutual Fund Fidelity Growth Company Vanguard Vanguard PIMCO 500 Index Total Return Total Bond Market Index Rate of Return 15.83% 14.25% 3.77% 3.67% Type Stock fund Stock fund Bond fund Bond fund For the past 25 years you have been depositing $500 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 $500 per month until you retire in 30 years. How much can you anticipate having in the investment when you retire? HINT [See 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
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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
Vanguard
PIMCO
500 Index Total Return
Total Bond
Market Index
Rate of
Return
15.83%
14.25%
3.77%
3.67%
Type Stock fund Stock fund
Bond fund
Bond fund
For the past 25 years you have been depositing $500 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 $500 per month until you retire in 30 years. How much can you anticipate having in the investment when you retire? HINT [See Example 1.] (Round your answer to the nearest cent.)
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff8b67db4-eabe-42f1-bc0a-c21c51c54deb%2Fb362a96a-a98f-4b89-a93f-7c4e2bbf1e40%2Fwn5t8oc_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
Vanguard
PIMCO
500 Index Total Return
Total Bond
Market Index
Rate of
Return
15.83%
14.25%
3.77%
3.67%
Type Stock fund Stock fund
Bond fund
Bond fund
For the past 25 years you have been depositing $500 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 $500 per month until you retire in 30 years. How much can you anticipate having in the investment when you retire? HINT [See Example 1.] (Round your answer to the nearest cent.)
$
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