Question

you are planning t 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, and the bond account will pay 6 percent. When you retire, you will combine your money into an account assuming a 25 year withdrawal period? stock account value retirement

Answer 1

$13,287.70

Step-by-step explanation:

The computation of the amount at withdrawal is to be determined by using the excel spreadsheet in which we applied the formulas like future value, PMT

Given that

Time period = 30 years

Withdrawal period = 25 years

Invested amount in stock account = $850

Invested amount in bond account = $350

Return on stock = 10%

Return on bond = 6%

Based on the above information

The withdrawal amount os $13,287.70