You will retire after 12 years and currently have $ 50,000 in a savings account that has an interest rate of 15% per annum and $ 100,000 in shares that have a yield (real interest rate) of 10%. If you expected to add $ 30,000 each year to your stock portfolio, how much money would you have raised in total at the end of 12 years? What will be the interest rate you will receive from this income if you withdraw $ 102,000 annually for 15 years until you retire?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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You will retire after 12 years and currently
have $ 50,000 in a savings account that has
an interest rate of 15% per annum and $
100,000 in shares that have a yield (real
interest rate) of 10%. If you expected to add $
30,000 each year to your stock portfolio, how
much money would you have raised in total at
the end of 12 years? What will be the interest
rate you will receive from this income if you
withdraw $ 102,000 annually for 15 years until
you retire?
Transcribed Image Text:You will retire after 12 years and currently have $ 50,000 in a savings account that has an interest rate of 15% per annum and $ 100,000 in shares that have a yield (real interest rate) of 10%. If you expected to add $ 30,000 each year to your stock portfolio, how much money would you have raised in total at the end of 12 years? What will be the interest rate you will receive from this income if you withdraw $ 102,000 annually for 15 years until you retire?
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