You have two relative that invested $100,000 each after receiving in an inheritance twenty years ago. Your uncle invested the $100,000 in a certificate of deposit that averaged 5% over the 20 year period. Your aunt divided her $100,000 into five $20,000 investments, the returns are indicated below. Using a financial calculator:
Calculate the ending value of these investments after the 20 year Uncle Ted $100,000 @ 5% for 20 years Value of Investment at end of Period $....................................
Aunt Mary:
Loses all $20,000 invested Value $ .......................
$20,000 @ 0% for 20 years Value $ .......................
$20,000 @ 5% for 20 years Value $ .......................
$20,000 @ 10% for 20 years Value $ .......................
$20,000 @ 15% for 20 years Value $ .......................
Value of Investment at end of Period Value $ .......................
From a perspective of investment management what does this illustration prove to you?