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( Future value of an annuity and annuity payments ) You are trying to plan for retirement in 1 0 years, and currently you have

(Future value of an annuity and annuity payments) You are trying to plan for retirement in 10 years, and currently you have $180,000 in a savings account and $300,000 in stocks. In addition, you plan to deposit $11,000 per year into your savings account at the end of each of the next 5 years, and then $14,000 per year at the end of each year for the final 5 years until you retire.
a. Assuming your savings account returns 9 percent compounded annually, and your investment in stocks will return 13 percent compounded annually, how much will you have at the end of 10 years? (Ignore taxes.)
b. If you expect to live for 19 years after you retire, and at retirement you deposit all of your savings into a bank account paying 12 percent, how much can you withdraw each year after you retire (making 19 equal withdrawals beginning one year after you retire) so that you end up with a zero-balance at death?
a. Assume your savings account returns 9 percent compounded annually, and your investment in stocks will return 13 percent compounded annually.
How much will you have at the end of 10 years in your savings account? (Ignore taxes.)
(Round to the nearest cent.)
How much will you have at the end of 10 years for your investment in stocks? (Ignore taxes.)
(Round to the nearest cent.)
Therefore, how much will you have at the end of 10 years?
(Round to the nearest cent.)
b. If you expect to live for 19 years after you retire, and at retirement you deposit all of your savings into a bank account paying 12 percent, how much can you withdraw each year after retirement (19 equal withdrawals beginning one year after you retire) to end up with a zero balance upon your death?
(Round to the nearest cent.)
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