10.

You are planning to save for retirement over the next 20 years. To do this, you will invest $700 a month in a stock account and $400 a month in a bond account. The return of the stock account is expected to be 10 percent, and the bond account will pay 6 percent. When you retire, you will combine your money into an account with a 9 percent return.

How much can you withdraw each month from your account assuming a 25-year withdrawal period?

a) $6,011.79

b) $6,132.02

c) $325,977.66

d) $5,891.55

e) $72,141.47

9.

The present value of the following cash flow stream is $6,910 when discounted at 8 percent annually.

Year	Cash Flow
1	$1,000
2	?
3	1,300
4	1,900

What is the value of the missing cash flow?

a) $4,064.23

b) $4,230.12

c) $3,555.54

d) $4,147.18

e) $2,710.00