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(Complex present value) You are trying to plan for retirement in 8 years, and currently you have $110,000 in a savings account and $330,000 in
(Complex present value) You are trying to plan for retirement in 8 years, and currently you have $110,000 in a savings account and $330,000 in stocks. In addition, you plan on adding to your savings by depositing $10,000 per year in your savings account at the end of each of the next 4 years and then $20,000 per year at the end of each year for the final 4 years until retirement. a. Assuming your savings account returns 5 percent compounded annually, and your investment in stocks will return 10 percent compounded annually, how much will you have at the end of 8 years? (Ignore taxes.) b. If you expect to live for 17 years after you retire, and at retirement you deposit all of your savings in a bank account paying 8 percent, how much can you withdraw each year after retirement (17 equal withdrawals beginning 1 year after you retire) to end up with a zero balance upon your death? . a. If your savings account returns 5 percent compounded annually, how much will you have at the end of 8 years in your savings account? (Ignore taxes.) (Round to the nearest cent.)
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