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A 4.23 You are planning to save for retirement over the next 30 years. To do this, you will invest $750 per month in a
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4.23 You are planning to save for retirement over the next 30 years. To do this, you will invest $750 per month in a stock account and $325 per month in a bond account. That's 360 deposits. The return of the stock account is expected to be an APR of 10.5 percent, and the bond account will earn an APR of 6.1 percent. When you retire in 30 years, you will combine your money into an account with an APR of 6.9 percent. All interest rates are compounded monthly. In 30 years, how much can you begin to withdraw each month from your account assuming a withdrawal period of 25 years? Hint: That's 25x12 withdrawals (or payments to your self at the end of each month) Monthly Payment: Stock FV ? Bond FV Total FV @REStep by Step Solution
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