You are determined to be a disciplined investor throughout your life. You begin investing $500 per...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You are determined to be a disciplined investor throughout your life. You begin investing $500 per month starting January 1 after you graduate from college. You persist with this amount per month for 10 years then up the monthly amount to $1000 per month for the next 10 years. At the end of the 20th year your investment portfolio loses 10% of its total value, but you are not deterred. You start investing $2,000 per month at the beginning of 21st year. How much will your portfolio be worth at the end of the 40th year assuming you earn an average of 8% per year? You are determined to be a disciplined investor throughout your life. You begin investing $500 per month starting January 1 after you graduate from college. You persist with this amount per month for 10 years then up the monthly amount to $1000 per month for the next 10 years. At the end of the 20th year your investment portfolio loses 10% of its total value, but you are not deterred. You start investing $2,000 per month at the beginning of 21st year. How much will your portfolio be worth at the end of the 40th year assuming you earn an average of 8% per year?
Expert Answer:
Answer rating: 100% (QA)
We can use the future value formula for monthly contributions to calculate the portfolio value at ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
Posted Date:
Students also viewed these finance questions
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Simplify each expression in Problems 722. Classify each answer by number of terms and degree. (x + 2y3z) - (x - 5y + 4z)
-
There is no finance in financial planning models. Explain.
-
After the FOMCs June 2023 meeting, an article in the Wall Street Journal noted that officials at the June meeting penciled in two more increases this year and the minutes said that projection would...
-
In Exercises 1518, use the given set of points to a. Compute b1. b. Compute the residual standard deviation se. c. Compute the sum of squares for x, (x x)2. d. Compute the standard error of b1, sb....
-
Bruce is considering the purchase of a restaurant named Hard Rock Hollywood. The restaurant is listed for sale at $1,000,000. With the help of his accountant, Bruce projects the net cash flows (cash...
-
Determine the amount of cost-sharing that must be paid by the patient in the scenario below. Ava received a service on January 1st, and the bill was $900. She has a deductible of $1,000 and a...
-
Repeat Example 9.2, but with a feed pressure of 5.0 MPa. Compare your results to those obtained at a feed pressure of 1.0 \(\mathrm{MPa}\). Data From Example 9.2:- Air can be separated into...
-
Change Analysis Item Year 1 Year 2 Amount Percent 3,000 2 6,000 (4,000) (7,000) 4,000 4 4,000 8,000 10,000 Required Determine the absolute change and the percentage for these items.
-
Simulate the band structure of Ge(Na 1016) - Si(Nd 1016) PN heterojunction with varies doping concentrations 2. Simulate the band structure of it at Va=0, negative, positive. 3. Plot the current flow...
-
The following cost data pertain to the operations of Montgomery Department Stores, Incorporated, for the month of July. Corporate legal office salaries Apparel Department cost of sales-Evendale Store...
-
Calculations Marketing Inc. issued 7.0% bonds with a par value of $370,000 and a five-year life on January 1, 2023, for $385,781. The bonds pay interest on June 30 and December 31. The market...
-
Kubin Company's relevant range of production is 28,000 to 31,500 units. When it produces and sells 29,750 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $...
-
Laura dives with a watch around her arm. Her watch can withstand an absolute pressure of P = 5.5 bar? Assume a gravity acceleration of g = 9.81 m/s, and a density of water pw = 1002 kg/m. Hint: 1 bar...
-
Explain the Due Process Model. In detail, describe why the United States prefers the Due Process Model over the Crime Control Model.
-
How can NAFTA be beneficial to suppliers of Walmart?
-
What amount of interest is capitalized under IAS 23?
-
The following information relates to a capital lease between Bradford Electric Co. (lessee) and Widstoe Manufacturing Inc. (lessor). The lease term began on January 1, 2011. Widstoe recorded the...
-
The information below was provided relative to the pension plan for Atlas Wholesale Company for the years 20112013. Instructions: 1. Compute the amount of net periodic pension expense for each of the...
-
a. Define illegal acts. b. What is the auditor's basic responsibility for such acts?
-
Jackson was a junior staff member of an accounting firm. He began the audit of the Bosco Corporation which manufactured and sold expensive watches. In the middle of the audit, he quit. The accounting...
-
Keen, a CPA and sole practitioner, was retained by Arthur \& Son, a partnership, to audit the company books and prepare a report on the financial statements for submission to several prospective...
Study smarter with the SolutionInn App