1. You are planning to save for retirement over the next 40 years. To do this, you will invest $700 a month in a stock account and $300 a month in a bond account. The return on the stock account is expected to be 9.6 percent, and the bond account will pay 5 percent. When you retire, you will combine your money into an account with a 6 percent return. How much can you withdraw each month during retirement assuming a 30-year withdrawal period?

A. $21,821.04

B. $26,257.67

C. $19.342.61

D. $38,722.43

2. Your business finance course has motivated you to begin investing for retirement in your company's 401K plan. Your first $400 monthly investment will be made one month from today and you plan to retire 40 years from today. How much more will you have to invest each month, if you wait for 15 years before starting to invest to end up with the same amount of money at retirement? Assume a rate of return of 0.75 percent per month for your investments.

A. $414.34

B. $792.08

C. $1,186.74

D. $1,587.78