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You are planning to save for retirement over the next 3 0 years. To save for retirement, you will invest $ 1 , 3 5
You are planning to save for retirement over the next years. To save for retirement, you will invest $ per month in a stock account in real dollars and $ per month in a bond account in real dollars. The effective annual return of the stock account is expected to be percent, and the bond account will earn percent. When you retire, you will combine your money into an account with an effective return of percent. The returns are stated in nominal terms. The inflation rate over this period is expected to be percent.
a
How much can you withdraw each month from your account in real terms assuming a year withdrawal period? Do not round intermediate calculations and round your answer to decimal places, eg
b What is the nominal dollar amount of your last withdrawal?
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