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Rachel and Richard believe they need at least $2,000,000 to retire. They assume the money market account grows at 2.5% annually, the government bond mutual fund grows at 5.5% annually, the large capital mutual fund grows at 9.5% annually, the small capital mutual fund grows at 12.0% annually, and the real estate trust fund grows at 4.0% annually. Using a spreadsheet, calculate the end-of-year balance for the portfolio with the assumption that no more funds will be deposited into any of these accounts. How long will it be until they reach the $2,000,000 goal? Given Data Money market account Government bond mutual fund Large capital mutual fund Small capital mutual fund Real estate trust fund Annual growth rate 2.5% 5.5% 9.5% 12.0% 4.0% Solution Year 0 Money Market $37,000.00 Government Bonds $140,000.00 Large Capital $107,000.00 Small Capital $71,000.00 Real Estate $87,000.00 Portfolio Total 4 Rachel and Richard believe they need at least $2,000,000 to retire. They assume the money market account grows at 2.5% annually, the government bond mutual fund grows at 5.5% annually, the large capital mutual fund grows at 9.5% annually, the small capital mutual fund grows at 12.0% annually, and the real estate trust fund grows at 4.0% annually. Using a spreadsheet, calculate the end-of-year balance for the portfolio with the assumption that no more funds will be deposited into any of these accounts. How long will it be until they reach the $2,000,000 goal? Given Data Money market account Government bond mutual fund Large capital mutual fund Small capital mutual fund Real estate trust fund Annual growth rate 2.5% 5.5% 9.5% 12.0% 4.0% Solution Year 0 Money Market $37,000.00 Government Bonds $140,000.00 Large Capital $107,000.00 Small Capital $71,000.00 Real Estate $87,000.00 Portfolio Total 4

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