If we were to invest $10,000 in an S&P 500 index fund, pay 0.2% annual fees, and
Question:
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.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 83% (12 reviews)
Let i be the effective interest r...View the full answer
Answered By
Dinesh F
I have over 3 years of professional experience as an assignment tutor, and 1 year as a tutor trainee.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
You have been at your job with East Coast Yachts for a week now and have decided you need to sign up for the company's 401(k) plan. Even after your discussion with Sarah Brown, the Bledsoe Financial...
-
Hugh Donovan is chief financial officer (CFO) of Light Speed Connections (LSC), a rapidly growing U.S. technology company with a traditional defined-benefit pension plan. Because of LSC's young...
-
Bronc Gerson is 60 years of age and is considering retirement. Bronc got his name from the fact that as a young man he spent several years in the rodeo circuit competing as a bareback rider. His...
-
Consider the following propositions: p: 2 is the smallest prime q: 6 is a perfect square Represent the proposition "2 is the smallest prime but 6 is not a perfect square" using logical connectives....
-
NASA plans to use a new type of rocket, a Variable Specific Impulse Magneto plasma Rocket (VASIMR), on future missions. If a VASIMR can produce 6.0 N of thrust (force), and has a mass of 620 kg, (a)...
-
A pistoncylinder device contains a mixture of 0.5 kg of H2 and 1.6 kg of N2 at 100 kPa and 300 K. Heat is now transferred to the mixture at constant pressure until the volume is doubled. Assuming...
-
What are the two ways a party may obtain a voluntary dismissal of an action?
-
The intangible assets section of Willingham Company at December 31, 2014, is presented below. Patents ($100,000 cost less $10,000 amortization) ...... $ 90,000 Copyrights ($60,000 cost less $24,000...
-
#pragma once // A Binary Search Tree implementation. template class BSTree { private: // A node in the tree. Each node has pointers to its left and right nodes // as well as its parent. When a node...
-
Research Data, a large corporation, retained attorney Cecilia Patino to represent it in a breach-of-contract action. Research Data agreed to pay Cecilia a one-third contingency fee. After filing suit...
-
You have $10,000 cash that you want to invest. Normally, you would deposit the money in a savings account that pays an annual interest rate of 6%. However, you are now considering the possibility of...
-
Suppose you have three goals in your financial planning for saving money. First, you would like to be able to retire 25 years from now with a retirement income of $10,000 (todays dollar) per month...
-
Laura Lightfingers steals a package of filet mignon priced at $19.99 from the meat counter in a supermarket. As she leaves the store, she is approached by a security guard. Lightfingers kicks and...
-
What is the difference between a discouraged worker and an unemployed worker?
-
In the UML notation a class can be represented by (a) A rectangular box with the name of the class in the box (b) A rectangular box with the name of the object, a : and the class name that the object...
-
Why is the measurement of unemployment problematic? Explain why, and in which occasions, the published unemployment rate may overstate the actual unemployment of the economy. Also, explain if the...
-
Identify the limitations that would have prevailed when the UML has no behavioral diagrams.
-
What in a class diagram is written in italics? (a) A subclass (b) An interface (c) A use case (d) An abstract class
-
After reconciling its bank account, Watson Company made the following adjustments to its cash account: Event No. Event Description 1. Corrected overstatement of expense 2. Recognized bank collection...
-
14. In testing the existence assertion, an auditor ordinarily works from the a. Financial statements to the accounting records. b. General journal to the general ledger. c. Supporting evidence to the...
-
You are considering an investment in a Christmas tree farm over two years. The farm already has trees planted a year ago, and these trees grow each year by the following factors. The price of the...
-
You currently own a piece of land and are contemplating the construction of either a small shopping mall with 10 stores or a large shopping mall with 30 stores. The current market value of one store...
-
A firm has invested in and is currently receiving benefits from project A. The current value of project A is $4M. In next five years, the firm will have the option to use most of the same equipment...
-
Students must useinformation literacy in their writing. Theprojectshould be at least #2000 words of content. Word document only! The students will be required to meet with a top level manager,...
-
Your agency has been directed by community leaders to develop and implement a community paramedic program targeting injury prevention among the elderly. You are now tasked with providing a briefing...
-
Write up an assessment record for one of the children/young people in a learning environment. The record must be set out clearly showing: - a) Your assessment of the learner's development b) How the...
Study smarter with the SolutionInn App