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s344n2d4d5 [400]
2 years ago
13

You are planning to save for retirement over the next 25 years. To do this, you will invest $820 per month in a stock account an

d $420 per month in a bond account. The return of the stock account is expected to be 10.2 percent, and the bond account will pay 6.2 percent. When you retire, you will combine your money into an account with a 7.2 percent return. How much can you withdraw each month from your account assuming a 20-year withdrawal period? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Business
1 answer:
alina1380 [7]2 years ago
4 0

Answer:

The withdraw amount is "11,227.42".

Explanation:

The given values are:

In stock account,

PMT = $820

Interest rate = \frac{10.2 \ percent}{12}

N = 300

PV = 0

In Bond account,

PMT = $420

Interest rate = \frac{6.2 \ percent}{12}

N = 300

PV = 0

Now,

By using the FV (Future value) function, the value in Stock account will be:

= FV(rate,nper,pmt,[pv],[type])

= 1,125,795.30

By using the FV (Future value) function, the value in Stock account will be:

= FV(rate,nper,pmt,[pv],[type])

= 300,181.3321

After 25 years,

The value throughout the account, will be:

= 300,181.3321 + 1,125,795.30

= 1,425,976.63

By using the PMT function, we can find the with drawling amount. The amount will be:

= PMT(rate, nper, pv, [fv], [type])

= 11,227.42

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Answer:

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Explanation:

Calculation for What amount should Valet report in its 2021 income statement for unrealized holding loss

Using this formula

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Let plug in the formula

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3 0
2 years ago
Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $185,000, expenses of $103,700, and withdrew $18,000 from
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Answer:

Explanation:

The closing entry of the income summary account is shown below:

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