You are planning to save for retirement over the next 30 years. To do this, you will invest $780 a month in a stock account and $380 a month in a bond account. The return of the stock account is expected to be 9.8 percent, and the bond account will pay 5.8 percent. When you retire, you will combine your money into an account with an 6.8 percent return. How much can you withdraw each month from your account assuming a 25-year withdrawal period? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Withdrawal per month
You are planning to save for retirement over the next 30 years. To do this, you will invest $780 a month in a stock account and $380 a month in a bond account. The return of the stock account is expected to be 9.8 percent, and the bond account will pay 5.8 percent. When you retire, you will combine your money into an account with an 6.8 percent return. How much can you withdraw each month from your account assuming a 25-year withdrawal period? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Withdrawal per month
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:You are planning to save for retirement over the next 30 years. To do this, you will invest
$780 a month in a stock account and $380 a month in a bond account. The return of the
stock account is expected to be 9.8 percent, and the bond account will pay 5.8 percent.
When you retire, you will combine your money into an account with an 6.8 percent
return.
How much can you withdraw each month from your account assuming a 25-year
withdrawal period? (Do not round intermediate calculations and round your final
answer to 2 decimal places. (e.g., 32.16))
Withdrawal
per month
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