question archive Future value of a portfolio
Future value of a portfolio
Subject:FinancePrice: Bought3
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): $39,000
? Government bond mutual fund? (GB): $135,000
? Large capital mutual fund? (LC): ?$104,000
Small capital mutual fund? (SC): ?$74,000
Real estate trust fund? (RE): ?$89,000
Rachel and Richard believe they need at least ?$2,400,000 to retire. The money market account grows at 2.0% ?annually, the government bond mutual fund grows at ?5.0% annually, the large capital mutual fund grows at 9?.5% annually, the small capital mutual fund grows at ?13.0% annually, and the real estate trust fund grows at 3.0%annually. With the assumption that no more funds will be deposited into any of these? accounts, how long will it be until they reach the ?$ 2,400,000 ?goal?
