Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You estimate that you have thirty years to retirement. You have two accounts to deposit monies on a monthly basis for retirement, a stock account

You estimate that you have thirty years to retirement. You have two accounts to deposit monies on a monthly basis for retirement, a stock account and a bond account. You estimate that your annual rate from the stock account will be 10% and the rate on the bond account will be 5.5%. When you retire you will combine the monies from these two accounts and deposit them into more liquid accounts to use for personal expenses on a monthly basis. You expect to earn 2% on this account in retirement want to use these funds (and only these funds) for twenty years. If you deposit $600 into the stock account and $450 into the bond account. Given these assumptions, how much per month can you withdraw from the account in retirement?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Option Trader Handbook

Authors: George Jabbour

2nd Edition

0470481617, 978-0470481615

More Books

Students also viewed these Finance questions

Question

2. Outline the business case for a diverse workforce.

Answered: 1 week ago