Annual withdrawal amount, You are planning your retirement

Annual withdrawal amount

Assignment Help Financial Management

Reference no: EM131543989

You are planning your retirement in 10 years. You currently have $163,000 in a bond account and $603,000 in a stock account. You plan to add $7,700 per year at the end of each of the next 10 years to your bond account. The stock account will earn a return of 11.25 percent and the bond account will earn a return of 7.75 percent. When you retire, you plan to withdraw an equal amount for each of the next 22 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 7 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.)

Annual withdrawal amount $

Reference no: EM131543989

Questions Cloud

Could the terrorist attacks of nine-eleven been prevented : Could the Terrorist Attacks of 9-11 Been Prevented? It should be a minimum of 5 pages (not including a Cover page or Reference page).

What is the effective cost of borrowing in case : What is the effective cost of borrowing in this case? Assume that default is extremely unlikely.

How does the biological perspective fit into the theories : How does the biological perspective fit into the theories you have already learned about? Which of these biological factors do you believe

Does al qaeda remain a danger within the united states : Are the jihadist motivated by religion? Does al Qaeda remain a danger within the United States? Should law makers create a new border security agency?

Annual withdrawal amount : You are planning your retirement in 10 years. How much can you withdraw each year in your retirement?

Develop accurate time and cost estimates for a project : Why is it important to develop accurate time and cost estimates for a project? As project manager, what would you do to estimate a project's time.

How did the policy choices differ among the three preference : How did the policy choices differ among the three preferences? How difficult was it to pursue your goals while also hitting the debt target?

What is the gain from the merger and cost of the cash offer : Velcro Saddles is contemplating the acquisition of Pogo Ski Sticks, Inc. What is the gain from the merger? What is the cost of the cash offer?

What is the return shareholders are expecting : Determine the equivalent taxable yield. (Round your answer to 2 decimal places and What is the return shareholders are expecting?

User Account

All Pages