Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please answer all parts, thank you! You plan to retire in exactly 10 years and are worried about the money you will have to live
please answer all parts, thank you!
You plan to retire in exactly 10 years and are worried about the money you will have to live on during your retirement. Requirement 1: You currently have $100,000 in a bond account and you plan to add $2,500 per year at the end of each of the next 10 years to the account. If the bond account earns a return of 4.5 percent per year over the next 10 years, how much will you have in the bond account when you retire? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Value of Bond Account Requirement 2: You also currently have $350,000 in a stock account. If the stock account earns a return of 11.5 percent per year over the next 10 years, how much will you have in the stock account when you retire? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16). Value of Stock Account Requirement 3: When you retire, you will transfer your money from the bond and stock accounts into a combined retirement account that earns 8 percent. Your plan is to withdraw an equal amount from your combined account at the end of each year for the next 25 years and then have nothing left. How much can you withdraw each year in your retirement? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16). $ Annual Withdrawal Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started