David is saving for retirement in a defined contribution plan that includes a bond fund and a stock fund as investment alternatives. David will retire in 30 years and is planning on a 30 year retirement period. David will contribute $20,000 per year to each fund until retirement.

Assume a rate of return of 3% for the bond fund and 6% for the stock fund.

i) The bond fund will accumulate to ________ by retirement.

A) $999,890 B) $951,508 C) $1,121,699 D) $1,328,777

ii) The stock fund will accumulate to________ by retirement.

A) $3,289,880 B) $1,473,044 C) $2,265,664 D) $1,581,164

iii) David will have accumulated sufficient funds to allow him to withdraw _______ from the stock fund per year over his retirement.

A) $114,870 B) $94,292 C) $194,401 D) $362,440

iv) If David wants to withdraw exactly $200,000 per year over his retirement from the stock fund, his annual contribution should be changed by ________.

A) $576 B) $14,822 C) $22,421 D) -$8,964