Question
You are planning to save for retirement over the next 25 years. To do this, you will invest $700 a month in a stock account
You are planning to save for retirement over the next 25 years. To do this, you will invest $700 a month in a stock account and $400 a month in a bond account. The return of the stock account is expected to be 12 percent, and the bond account will pay 7 percent. When you retire, you will combine your money into an account with a 10 percent return. |
Required:
How much can you withdraw each month from your account assuming a 15-year withdrawal period? (Do not round your intermediate calculations.) |
a. $17,262.85 b. $17,967.46 c. $17,615.16 d. $575,126.26 e. $211,381.87 |
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