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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?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92795454

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