Question

Mutual Fund Fidelity Growth Company Vanguard 500 Index PIMCO Total Return Vanguard Total Bond Market Index Rate of Return 14.83% 14.25% 2.77% 2.67% Type Stock fund Stock fund Bond fund Bond fund How much would be accumulated after 30 years in a retirement account invested entirely in the Fidelity stock fund with payments of $500 per month? HINT [See Quick Example 1.] (Round your answer to the nearest cent.)

Answer 1

The accumulated value after 30 years in a retirement account invested in the Fidelity stock fund with $500 monthly payments would be approximately $1,521,214.66.

Step-by-step explanation:

To calculate the accumulated value after 30 years in a retirement account invested entirely in the Fidelity stock fund with payments of $500 per month, we can use the compound interest formula:
Accumulated Value = Payment x [(1 + Rate)^Years - 1) ÷ Rate]

Plug in the values:

• Payment = $500
• Rate = 14.83% ÷ 100 = 0.1483
• Years = 30

Substituting these values into the formula:

Accumulated Value = $500 x [(1 + 0.1483)^30 - 1) ÷ 0.1483]

Calculating this, the accumulated value would be approximately $1,521,214.66.