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Q6. You are planning to save for retirement over the next 30 years. To save for retirement, you will invest $900 per month in a
Q6. You are planning to save for retirement over the next 30 years. To save for retirement, you will invest $900 per month in a stock account in real dollars and $300 per month in a bond account in real dollars. The effective annual return of the stock account is expected to be 12 percent and the bond account will earn 7 percent. When you retire, you will combine your money into an account with an effective return of 8 percent. The inflation rate over this period is expected to be 4 percent. How much can you withdraw each month from your account in real terms assuming a withdrawal period of 25 years? What is the nominal dollar amount of your last withdrawal
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