What is the nominal dollar amount of your last withdrawal

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Reference no: EM131020457

You are planning to save for retirement over the next 30 years. To save for retirement, you will invest $1,950 a month in a stock account in real dollars and $620 a month in a bond account in real dollars. The effective annual return of the stock account is expected to be 11 percent, and the bond account will earn 6 percent. When you retire, you will combine your money into an account with a 8 percent effective return. The inflation rate over this period is expected to be 3 percent. How much can you withdraw each month from your account in real terms assuming a 25-year withdrawal period? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Monthly withdrawal $ What is the nominal dollar amount of your last withdrawal?

Reference no: EM131020457

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