Question
You are trying to plan for retirement in 35 years and currently you have $95,000.00 in a savings account and $17,500.00 in stock. In addition
You are trying to plan for retirement in 35 years and currently you have $95,000.00 in a savings account and $17,500.00 in stock. In addition you plan on adding to your savings by depositing $3,000.00 per year in your SAVINGS account at the end of each of the next 10 years and then $10,000.00 per year at the end of each year for the final 25 years until retirement. Assuming your savings account returns 2% compounded annually while your investment in stocks will return 5% compounded annually, how much will you have when you retire in 35 years? [Ignore taxes.]
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