the following table shows 8. -11 points WaneFM7 2 3.050. My The followng table s
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the following table shows
8. -11 points WaneFM7 2 3.050. My The followng 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 Vanguard Growth 500 Index Total Return Market Index Vanguard Total Bond PIMCO Fund Rate of Return 1483% 13 25% 377% 3.67% Type Stock fundStock fund Bond fund Bond fund How much should you pay esch month into a retirement account immested in the Vanguard bond fund if you wish to retire in 25 years with an investment valued at five million dollars? HINT ISee Quick Example 21 (ound your answer to the nearest cent.) Need Help? Somit Answer Save Progress s View Previcus Question Question 8 of 17 View Next Question>>Explanation / Answer
here as future value F =P*ert where P =present value ; r=% return and t =time period
therefore investment =F*e-rt =5*106*e-0.1325*25=182124.99
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