Question
You are planning to save for retirement over the next 31 years. To do this, you will invest $832 per month in a stock account
You are planning to save for retirement over the next 31 years. To do this, you will invest $832 per month in a stock account and $493 per month in a bond account. The return of the stock account is expected to be 7.5 %, and the bond account will pay 3.1 %. When you retire, you will combine your money into an account with a return of 5.7 %.
How much will be in the stock account at retirement?(Round answer to 2 decimal places, round the intermediate interest rate calculation to 5 decimal places if using TVM formulas and 3 decimal places if using a financial calculator)
How much will be in the bond account at retirement?(Round answer to 2 decimal places, round the intermediate interest rate calculation to 5 decimal places if using TVM formulas and 3 decimal places if using a financial calculator)
How much can you withdraw each month from your account assuming a 22-year withdrawal period?(Round answer to 2 decimal places, round the intermediate interest rate calculation to 5 decimal places if using TVM formulas and 3 decimal places if using a financial calculator)
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