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Over the next 20 years, Mario invests dollar 500 from every 2 week paycheck into stocks earning 8 percentage per year. He takes an early
Over the next 20 years, Mario invests dollar 500 from every 2 week paycheck into stocks earning 8 percentage per year. He takes an early retirement but does not want to draw on or put his investment at risk, so he rolls that lump sum into AAA rated 10 year bonds purchased at face value that pay 6 percentage annual dividends (he does not reinvest his dividends anywhere -- he simply holds the cash). After his bonds mature, he puts all his monies into a trust fund which will earn 4 percentage annual interest for as long as there is still money in the account. Beginning in year 31, Mario's family can draw _______ dollars per month forever, based on the funds he has accumulated. Selected Answer: dollar 3295 Response Feedback: Review sections 5.5 and 7.6
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