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You are planning to save for retirement over the next 30 years. To do this, you will invest $850 per month in a stock account
You are planning to save for retirement over the next 30 years. To do this, you will invest $850 per month in a stock account and $350 per month in a bond account. The return of the stock account is expected to be 10 percent, and the bond account will pay 6 percent. When you retire, you will combine your money into an account with a return of 5 percent. How much can you withdraw each month from your account assuming a 25-year withdrawal period? Monthly stock investment Monthly bond investment Stock return 850 350 10% Bond return 6% Years to save 30 5% Retirement return Retirement years Months per year 25 12 Complete the following analysis. Do not hard code values in your calculations. All answers should be positive. A A Stock account value at retirement Bond account value at retirement Total account value at retirement Monthly withdrawal
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