Question
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?
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