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2. You are planning your retirement in 10 years. a You currently have $120,000 in a bond account, and you plan to add $5,000 per
2. You are planning your retirement in 10 years. a You currently have $120,000 in a bond account, and you plan to add $5,000 per year at the end of each of the next 10 years to the account. If the bond account carns a return of 7 percent per year over the next 10 years, how much will you have in the bond account when you retire? Your answer here: b. You also currently have $500,000 in a stock account. If the stock account earns a retum of 10.5 percent per year over the next 10 years, how much will you have in the stock account when you retire? Your answer here: c. When you retire, you will transfer your money from the bond and stock accounts (parts a and b) into a combined retirement account that earns 6.25 percent. Your plan is to withdraw an equal amount from your combined account at the end of each year for the next 25 years and then have nothing left. How much can you withdraw each year in your retirement
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