u are planning to save for retirement over the next 35 years. To do this, you will invest $700 a month in a stock account and $350 a month in a bond account. The return of the stock account is expected to be 13.0 percent, and the bond account will pay 6.0 percent. When you retire, you will combine your money into an account with an 11 percent return. How much can you withdraw each month from your account, assuming a 30-year withdrawal period? (Do not round intermediate calculations. Round the answer to 2 decimal places. Omit $ sign in your response.)
u are planning to save for retirement over the next 35 years. To do this, you will invest $700 a month in a stock account and $350 a month in a bond account. The return of the stock account is expected to be 13.0 percent, and the bond account will pay 6.0 percent. When you retire, you will combine your money into an account with an 11 percent return. How much can you withdraw each month from your account, assuming a 30-year withdrawal period? (Do not round intermediate calculations. Round the answer to 2 decimal places. Omit $ sign in your response.)
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 44P
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You are planning to save for retirement over the next 35 years. To do this, you will invest $700 a month in a stock account and $350 a month in a bond account. The return of the stock account is expected to be 13.0 percent, and the bond account will pay 6.0 percent. When you retire, you will combine your money into an account with an 11 percent return. How much can you withdraw each month from your account, assuming a 30-year withdrawal period? (Do not round intermediate calculations. Round the answer to 2 decimal places. Omit $ sign in your response.)
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