Look carefully at the following list. a. The coins in your pocket. b. The funds in your checking account. c. The funds in your s
1 answer:
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Answer:
withdraw each month is $6,902.37
Explanation:
given data
time = 25 year
invest = $700 per month
stock amount = $300 per month
expected rate = 9% =
bond account = 5%
return = 6%
to find out
withdraw each month from account for 20 year withdrawal period
solution
we will apply here future value formula that is
FV = ...............1
here P is principal amount i.e $700 given and r is are and t is time
so
The value of the stock account at retirement will be
value of the stock account =
value of the stock account = $784,785.36
and
value of the bond account at retirement will be
value of the bond account =
value of the bond account = $178,652.91
and
so value of the two accounts combined is here
= $178,652.91+$784,785.36 = $963,438.27
so
monthly withdrawal from combined account is
amount = ...............2
amount =
amount = $6,902.37