Solution-Planning to save for retirement

Planning to save for retirement

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Reference no: EM131206365

You are planning to save for retirement over the next 24 years. To do this, you will invest $638 per month in a stock account and $228 per month in a bond account. The return of the stock account is expected to be 9 %, and the bond account will pay 3 %. When you retire, you will combine your money into an account with a return of 6 %.

How much will be in the stock account at retirement? (Round answer to 2 decimal places, round the intermediate interest rate calculation to 5 decimal places if using TVM formulas and 3 decimal places if using a financial calculator)

How much will be in the bond account at retirement? (Round answer to 2 decimal places, round the intermediate interest rate calculation to 5 decimal places if using TVM formulas and 3 decimal places if using a financial calculator)

How much can you withdraw each month from your account assuming a 23-year withdrawal period? (Round answer to 2 decimal places, round the intermediate interest rate calculation to 5 decimal places if using TVM formulas and 3 decimal places if using a financial calculator)

Reference no: EM131206365

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Planning to save for retirement : You are planning to save for retirement over the next 24 years. To do this, you will invest $638 per month in a stock account and $228 per month in a bond account. The return of the stock account is expected to be 9 %, and the bond account will pa..

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Planning to save for retirement

Reference no: EM131206365

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