You Have $5,000 in an Index Mutual Fund

question 33

True/False

You have $5,000 in an index mutual fund. At an average annual rate of return of 10% per , this investment should exceed a value of $500,000 by the time you retire in 40 years.

---

Definitions:

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs from total revenue; also known as net profit.

Inventory System

A method for keeping track of the quantity, location, and status of goods a company has in stock.

Revenue Recorded

The process of documenting income earned by a business during a specific period, usually upon the delivery of goods or services.

Cost Flow Assumption

The method used to allocate costs to inventory and cost of goods sold, such as FIFO, LIFO, or weighted average.