Question 9 [5 pts]

It is Dec. 31, 2040, and you are planning to save for retirement over next 30 years. You will invest $850 per month in an equity investment account and $250 per month in a risk-free bond account. Assume that the return on the equity account is equal to 12% per year, while the risk-free rate is 6% per year. Determine the value of your saving at your retirement on Dec. 31, 2070.

Answer (show the steps/calculation toward your results):