EXAMPLES
Here are some examples of such funds:
1. You set up a college fund for your new baby. You plan to deposit
various amounts, at various times, into the fund. You will earn
at varying rates over the life of the fund, which you expect to be
18 years.
2. You set up a retirement fund. You plan to deposit various amounts, at
various times, with some amounts matched by your employer. You
will earn varying rates over the life of the fund, which you expect to
be 40 years.
We will look at one particular type of such a fund, where the investor makes
an initial contribution, reinvests all interest earned, sets a date to close out the
fund, and closes out the fund on the date planned. In all the examples, as usual
in this book, the investments will be in ...