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Problem 7-25

You wish to retire in 10 years and currently have $60,000 in a savings account yielding 6 percent annually and $100,000 in quality "blue chip" stocks yielding 10 percent. If you expect to add $40,000 at the end of each year to your stock portfolios, how much will you have in your retirement fund when you retire? Use Appendix A and Appendix C to answer the question. Round your answer to the nearest dollar. $

What rate of return must you earn on your retirement funds if you want to withdraw $100,000 per year for the next 14 years after retiring? Use Appendix D to answer the question. Round your answer to the nearest whole number. %