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You want to start saving for your retirement, which you expect 3 8 years from now. To do this, you will invest $ 9 0
You want to start saving for your retirement, which you expect years from now. To do this, you will invest $ every month until then. You decide to allocate your savings as follows:
$ per month in a stock fund with an expected APR return of
$ per month in a bond fund with an expected APR return of
At your retirement, you will redeem all of your investments and put them into a single account with a return. But you will also make monthly withdrawals over the years of your expected life following retirement.
How much will you be able to withdraw from your account each month during your year retirement? Hint: First calculate the total future value of what you have invested at your retirement date; and then calculate a monthly annuity payment using that future value as your base amount.
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