Fund pays you average annual rate of return

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Reference no: EM131990394

Your brother-in-law is inviting you to invest some money with him. He argues that he can beat whatever effective yield you are getting form your mutual fund. He is asking you to invest $10,000 today and promises to pay you back $15,000 in five years If your mutual fund pays you an average annual rate of return of 8%, is your brother-in-law telling the truth?

To live my desired life style, I have determined that the value of my retirement portfolio must double. Assuming that there are no further contributions to my portfolio and that , for the foreseeable future, I can earn a 4% annual return on my portfolio, how long must I wait to retire? ______.

Reference no: EM131990394

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