Estimate the future value of your retirement account based on the following assumptions. You contribute $500 per
Fantastic news! We've Found the answer you've been seeking!
Question:
- Estimate the future value of your retirement account based on the following assumptions. You contribute $500 per month and your employer matches 50% of your contribution. You invest the monthly contribution into two funds, equities and fixed income, which are expected to earn 9% and 3% annual rates of return, compounded monthly. You allocate your monthly contribution between equities and fixed income, 75% and 25%, respectively. Your current retirement account investments consist of $12,000 of equities and $5,000 of fixed income. You just turned 27 and will maintain your current investment program until you turn 65. Please answer the following questions. (Hint – perform separate calculations for the equity and fixed income account balances).
- Write out the excel formula you will use to perform the calculation(s).
- Calculate the future value of equity and fixed income account balances when you are 65 as well as the total investment account balance.
Related Book For
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Posted Date: