None You are planning your retirement in 10 years. You currently have $172,000 in a bond account and $612,000 in a stockaccount. You plan to add $6,800 per year at the end of each of the next 10 years to your bond account. The stockaccount will earn a return of 10.5 percent and the bond account will earn a return of 7 percent. When you retire, youplan to withdraw an equal amount for each of the next 23 years at the end of each year and have nothing left.Additionally, when you retire you will transfer your money to an account that earns 6.25 percent. How much can youwithdraw each year in your retirement? Note: Do not round intermediate calculations and round your answer to 2decimal places, e. g., 32.16.

Given:You currently have $172,000 in a bond account and $612,000 in a stock account for a total of…

Answered: You are planning your retirement in 10…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PB: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

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Similar questions

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Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
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You are planning your retirement in 10 years. You currently have $161,000 in a bond account and $601,000 in a stock account. You plan to add $7,900 per year at the end of each of the next 10 years to your bond account. The stock account will earn a return of 10.75 percent and the bond account will earn a return of 7.25 percent. When you retire, you plan to withdraw an equal amount for each of the next 24 years at the end of each year and have nothing left. Additionally, when you retire you will transfer your money to an account that earns 6.5 percent. How much can you withdraw each year in your retirement? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Annual withdrawal amount $ 188,765.43
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ou are planning your retirement in 10 years. You currently have $170,000 in a bond account and $610,000 in a stock account. You plan to add $7,000 per year at the end of each of the next 10 years to your bond account. The stock account will earn a return of 11 percent and the bond account will earn a return of 7.5 percent. When you retire, you plan to withdraw an equal amount for each of the next 25 years at the end of each year and have nothing left. Additionally, when you retire you will transfer your money to an account that earns 6.75 percent. How much can you withdraw each year in your retirement? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) A. annual withdrawl amount
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