Question

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 7 percent, and the bond account will pay 4 percent. When you retire, you will combine your money into an account with a return of 6 percent. How much can you withdraw each month from your account assuming a 20-year withdrawal period?

Answer 1

Step-by-step explanation:

The formula for calculating the future value of an ordinary annuity (where a series of equal payments are made at the end of each of multiple periods) is - FV = PMT [((1 + r)n - 1) / r] Where: FV = The future value of the annuity stream PMT