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Ravi, age 42 has $250,000 saved and plans to retire at age 67. Ravi is saving an additional $10,000 each year from 42 until retirement.
Ravi, age 42 has $250,000 saved and plans to retire at age 67. Ravi is saving an additional $10,000 each year from 42 until retirement. Ravi's asset allocation is 65% stocks and 35% bonds. The investment return on stocks is 6% and the return on bonds is 3%. Calculate the amount of financial assets Ravi will have at retirement.
a. $1,310,562
b. $1,621,613
c. $888,037
d. $1,093,791
e. $1,197,011
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