Pergunta
25. Geraldo reviews his brokerage statement and sees the following two mutual fund investments that he made a year ago. ActiveFund20 had an average return (before fees)of 7.0% per year and an annual fee of 1% PassiveFund500 had an average return (before fees) of 6.5% per year and an annual fee of 0.1% Which investment had a better return for Geraldo (net of fees)? ActiveFund20: It had an overall return of 8.0% while PassiveFund500 had an overall return of 6.6% PassiveFund500: It had an overall return of 6.6% while ActiveFund20 had an overall return of 8% ActiveFund20: It had an overall return of 7.0% while PassiveFund500 had an overall return of 6.5% PassiveFund500: It had an overall return of 6.4% while ActiveFund20 had an overall return of 6.0% 1 point 26. What is a ROTH Ira? Roth IRA Roth IRA is a type of individual retirement account (IRA) where you pay taxes on money going into your account, and then all future withdrawals of earnings are free from tax and penalty once you reach age 59(1)/(2) and the Roth IRA has been open for at least five years. A Savings Account that earns high interest A retirement account that you open at age 45 3 points
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AlexandreEspecialista · Tutor por 3 anos
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25. To determine which investment had a better return for Geraldo (net of fees), we need to calculate the net return for each fund.<br /><br />For ActiveFund20:<br />- Average return (before fees): 7.0%<br />- Annual fee: 1%<br />- Overall return: 8.0%<br /><br />Net return for ActiveFund20 = Overall return - Annual fee = 8.0% - 1% = 7.0%<br /><br />For PassiveFund500:<br />- Average return (before fees): 6.5%<br />- Annual fee: 0.1%<br />- Overall return: 6.6%<br /><br />Net return for PassiveFund500 = Overall return - Annual fee = 6.6% - 0.1% = 6.5%<br /><br />Therefore, the correct answer is: ActiveFund20: It had an overall return of 7.0% while PassiveFund500 had an overall return of 6.5%.<br /><br />26. A Roth IRA is a type of individual retirement account (IRA) where you pay taxes on money going into your account, and then all future withdrawals of earnings are free from tax and penalty once you reach age 59 1/2 and the Roth IRA has been open for at least five years.<br /><br />Therefore, the correct answer is: Roth IRA is a type of individual retirement account (IRA) where you pay taxes on money going into your account, and then all future withdrawals of earnings are free from tax and penalty once you reach age 59 1/2 and the Roth IRA has been open for at least five years.
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