Real estate investment trust index fund

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Reference no: EM131490534

An investor wants to diversify her portfolio and decides to invest in a Vanguard REIT (real estate investment trust) Index Fund. Over the past ten years the fund has had an average compound annual return of 10.94%. If the fund continues to have an average return of 10.94% a year, and the investor reinvests the annual dividends paid, how much would she need to invest today to have $25,000 after 5 years? (WHICH FORMULA MUST I USE TO SOLVE THIS? )

a. $14,309

b. $14,876

c. $15,754

d. $16,504

e. $16,912

Reference no: EM131490534

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