A $100,000 bond portfolio generates exactly $9,000 per year in income. Another $100,000 portfolio currently yields $7,000 per year in income, but this amount is expected to grow at 4 percent annually. In about how many years will the two portfolios yield equal amounts?© BrainMass Inc. brainmass.com June 3, 2020, 11:30 pm ad1c9bdddf
Yield in plan 1=$9000 per annum
Yield in Plan 2= $7000 per annum
Growth of yield in plan ...
The solution describes the steps to calculate the time period when returns from two different portfolios will be the same.