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Question 18 (8 points) You are planning your retirement in 10 years (10 years from today). Answer parts (a) - (b) below. Be sure to
Question 18 (8 points) You are planning your retirement in 10 years (10 years from today). Answer parts (a) - (b) below. Be sure to label which answer is for part (a) and which is for part (b). a. You currently (t=0) have $120,000 in a bond account, and you plan to add $5,000 per year at the end of each of the next 10 years to the account. If the bond account earns a return of 7.0 percent per year over the next 10 years, how much will you have in the bond account when you retire? b. You also currently (t=0) have $500,000 in a stock account. If the stock account earns a return of 10.5 percent per year over the next 10 years, how much will you have in the stock account when you retire? [You will not be making any additional deposits to this account during this ten year period.)
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