Question

You are planning to save for retirement over the next 15 years. To do this, you will invest $600 a month in a stock account and $300 a month in a bond account. The return of the stock account is expected to be 10 percent, and the bond account will pay 6 percent. When you retire, you will combine your money into an account with a return of 8 percent. How much can you withdraw each month from your account assuming a 20-year withdrawal period?

Answer #1

1. Future Value of Amount invested in Stock fund = Monthly Investment * Future Value Annuity factor (0.83%,180)

Future Value of Amount invested in Stock fund = 600 * 414.4703

Future Value of Amount invested in Stock fund after 15 years = $248682.21

2. Future Value of Amount invested in Bond fund = Monthly Investment * Future Value Annuity factor (0.50%,180)

Future Value of Amount invested in Bond fund = 300 * 290.8187

Future Value of Amount invested in Bond fund after 15 years = $87245.61

3.Account Balance after 15 years = $248682.21 + 87245.61 = $335927.82

4. Monthly Withdrawal for 20 years = Accounts balance after 15 years / Present Value Annuity Factor (0.667%,240)

Monthly Withdrawal for 20 years = $335927.82 / 119.5543

**Monthly Withdrawal for 20 years = $2809.83**

**Please upvote if satisfied**

You are planning to save for retirement over the next 20 years.
To do this, you will invest $600 a month in a stock account and
$300 a month in a bond account. The return of the stock account is
expected to be 11 percent, and the bond account will pay 6 percent.
When you retire, you will combine your money into an account with a
return of 9 percent. How much can you withdraw each month from your
account...

You are planning to save for retirement over the next 25 years.
To do this, you will invest $900 a month in a stock account and
$600 a month in a bond account. The return of the stock account is
expected to be 12 percent, and the bond account will pay 6 percent.
When you retire, you will combine your money into an account with a
9 percent return.
Required:
How much can you withdraw each month from your account...

You are planning to save for retirement over the next 30 years.
To do this, you will invest $1,300 a month in a stock account and
$1,000 a month in a bond account. The return of the stock account
is expected to be 9 percent, and the bond account will pay 4
percent. When you retire, you will combine your money into an
account with a 6 percent return.
Required:
How much can you withdraw each month from your account...

you are planning on to save for retirement over the next 20
years. to do this, you will invest $900 a month in a stock account
and $600 a month in bond account. The return of the stock account
is expected to be 9 percent, and the bond account will pay 5
percent. when you retire, you will you money into an account with a
return of 7 percent. how much can you withdraw each month from your
account assuming...

You are planning to save for retirement over the next 25 years.
To do this, you will invest $1,000 a month in a stock account and
$700 a month in a bond account. The return of the stock account is
expected to be 11 percent, and the bond account will pay 6 percent.
When you retire, you will combine your money into an account with a
9 percent return. Required: How much can you withdraw each month
from your account...

You are planning to save for retirement over the next 30 years.
To do this, you will invest $850 per month in a stock account and
$350 per month in a bond account. The return of the stock account
is expected to be 10 percent per year, and the bond account will
earn 6 percent per year. When you retire, you will combine your
money into an account with an annual return of 7 percent. How much
can you withdraw...

You are planning to save for retirement over the next 35 years.
To do this, you will invest $710 per month in a stock account and
$310 per month in a bond account. The return of the stock account
is expected to be 9.1 percent, and the bond account will earn 5.1
percent. When you retire, you will combine your money into an
account with an annual return of 6.1 percent. Assume the returns
are expressed as APRs.
How much...

You are planning to save for retirement over the next 30 years.
To save for retirement, you will invest $1,050 a month in a stock
account in real dollars and $530 per month in a bond account in
real dollars. The effective annual return of the stock account is
expected to be 10 percent, and the bond account will earn 6
percent. When you retire, you will combine your money into an
account with an effective annual return of 8...

You are planning to save for retirement over the next 25 years.
To do this, you will invest $3,000 a quarter in a stock account and
$1,000 a quarter in a bond account. These investments will be made
at the beginning of each quarter. The return of the stock account
is expected to be 8%, and the bond account will pay 4%. When you
retire, you will combine your money into an account with a 6%
return. How much can...

You are planning to save for retirement over the next 25 years.
To do this, you will invest $850 per month in a stock account and
$450 per month in a bond account. The return of the stock account
is expected to be an APR of 10.5 percent, and the bond account will
earn an APR of 6.5 percent. When you retire, you will combine your
money into an account with an APR of 7.5 percent. All interest
rates are...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 3 minutes ago

asked 15 minutes ago

asked 15 minutes ago

asked 15 minutes ago

asked 20 minutes ago

asked 26 minutes ago

asked 29 minutes ago

asked 34 minutes ago

asked 34 minutes ago

asked 36 minutes ago

asked 45 minutes ago

asked 49 minutes ago