Current portfolio will be sufficient for them to retire

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Reference no: EM131487448

Rachel and Richard want to know when their current portfolio will be sufficient for them to retire. They have the following balances in their? portfolio:

Money market account? (MM): $36,000

Government bond mutual fund? (GB): ?$130,000

Large capital mutual fund? (LC): ?$109,000

Small capital mutual fund? (SC): ?$72,000

Real estate trust fund? (RE):?$86,000

Rachel and Richard believe they need at least 1,600,000 to retire. 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 9.0 % ?annually, the small capital mutual fund grows at 12.0 % ?annually, and the real estate trust fund grows at 3.0 % annually. With the assumption that no more funds will be deposited into any of these? accounts, how long will it be until they reach th ?$1,600,000 ?goal?

Reference no: EM131487448

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