60.1K

Verified Solution

Link Copied!

a. Find the equal monthly payments that can be withdrawn from the account such that the funds will last exactly 17 years. (method: lifecycle fund)

b. Ending Balance:

c. How much money was earned through the investments over the final 17 years?

Time: Final 17 Years Goal: Find the equal monthly payments that can be withdrawn from the account such that the funds will last exactly 17 years. Life-Cycle Fund What is a Life-Cycle Fund? A special category of balanced, or asset-allocation, mutual fund in which the proportional representation of an asset class in a fund's portfolio is automatically adjusted during the course of the fund's time horizon. The automatic portfolio adjustment run from a position of higher risk to one of lower risk as the investor ages and/or nears retirement. (investopedia.com) Method: Allocation Amount Invested: 100% Life Cycle Fund Starting Balance: $484,029.51 Life-Cycle Rate: 6.9% Get from Life-Cycle Rate sheet Monthly Withdrawal Amount: Ending Balance: How much money was earned through the investments over the final 17 years? Time: Final 17 Years Goal: Find the equal monthly payments that can be withdrawn from the account such that the funds will last exactly 17 years. Life-Cycle Fund What is a Life-Cycle Fund? A special category of balanced, or asset-allocation, mutual fund in which the proportional representation of an asset class in a fund's portfolio is automatically adjusted during the course of the fund's time horizon. The automatic portfolio adjustment run from a position of higher risk to one of lower risk as the investor ages and/or nears retirement. (investopedia.com) Method: Allocation Amount Invested: 100% Life Cycle Fund Starting Balance: $484,029.51 Life-Cycle Rate: 6.9% Get from Life-Cycle Rate sheet Monthly Withdrawal Amount: Ending Balance: How much money was earned through the investments over the final 17 years

Answer & Explanation Solved by verified expert

See Answer