Value of the bonus in ten years
Not what you're looking for?
You have received a $10,000 bonus which you would like to invest for your child's education. Calculate the value of the bonus in ten years if invested in each of the following:
Option 1: A money market fund that has a current interest rate of 1.75%.
Option 2: U.S. Series I bonds (use the current interest rate for I bonds)
Option 3: A balanced mutual fund that has historically grown by 5% per year
Option 4: A growth mutual fund that has historically grown by 7% per year.
Show your result for each option. Then select the investment that is best suited to your goal and risk tolerance. Explain the advantages and disadvantages of each option.
Your response should explain the advantages and disadvantages of your selection. take the vantage point of an investment advisor.
Purchase this Solution
Solution Summary
This explains the value of the bonus in ten years
Solution Preview
You have received a $10,000 bonus which you would like to invest for your child's education. Calculate the value of the bonus in ten years if invested in each of the following:
Option 1: A money ...
Purchase this Solution
Free BrainMass Quizzes
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.