Find average returns over the last ten years on a mutual fund. Use this to estimate what $10,000 invested today would be after 35 years. How much is the investment it the rate is lesser or higher by 2%
1 Answer | Add Yours
This site provides details of a large number of mutual funds based in the US and which invest in different categories of assets.
Choosing the mutual fund Azzad Ethical Mid Cap Fund the average annual returns over the last ten years are at 6.06%. If the fund continues to give the same performance over the next 35 years and the returns are the same an amount of $10000 invested in the fund today would be equal to 10000*(1 + 35*6.06) = $2131000 after 35 years.
At a rate that is 2% less than its present average rate of return the investment would be equal to 10000*(1 + 35*4.06) = $1431000 and if the rate of returns is 2% higher, the investment would be equal to $2831000 after 35 years.
Join to answer this question
Join a community of thousands of dedicated teachers and students.Join eNotes