Question: Consider two funds that start with $1,000 and have returns as shown below. tund #1 Step 1. Fill in each table. For instance, the



Consider two funds that start with $1,000 and have returns as shown below. tund \#1 Step 1. Fill in each table. For instance, the " $ Return" for Fund #1 for the first year would be $188.0000 (which is 18.80% of that year's beginning 32 balance.) 33 34 Hint: the Ending Balance on the last row of feach table should be 35 almost identical (within a dollar of each other). 36 37 Step 2. Redo both tables, but this time assume a withdrawal of $133 38 on each row. This would be like an investor withdrawing funds from 37 Step 2. Redo both tables, but this time assume a withdrawal of $133 38 on each row. This would be like an investor withdrawing funds from 39 his retirement in order to pay his living expenses. Note that the returns 40 for Fund #2 are more volatile than Fund \#1. Will this matter to the investor? Fund \#1 \begin{tabular}{|c|c|c|c|c|c|c|} \hline 45 & Return & Year & Beg Bal & \$Return & Withdrawal & End Bal \\ \hline 46 & 18.8% & 1 & 1000 & & 133 & \\ \hline 47 & & & & & & \\ \hline 48 & 15.2% & 2 & & & 133 & \\ \hline 49 & & & & & 133 & \\ \hline 50 & 16.4% & 3 & & & 133 & \\ \hline 51 & & & & & & \\ \hline 52 & 12.4% & 4 & & & & \\ \hline 53 & & & & & & \\ \hline 54 & 15.1% & 5 & & & & \\ \hline 55 & & & & & & \\ \hline 56 & & & & & & \\ \hline 57 & & & & & \\ \hline 58 & Fund \#2 & & & & & \\ \hline \end{tabular} Step 3. Using the tables from Step 2, please compare the Ending Balance 72 on the last row (Year 5 ) of each table. 73 How much less is Fund \#2's Ending Balance for Year 5 ? 74 A Between 20 and 37 75 B Between 37 and 50 76C Between 50 and 61 77 D Between 61 and 75
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