1. You are planning to save for retirement over the next 40 years. To do this, you will invest $500 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. You plan to make monthly withdrawals of $11,000 each and expect to live for 30 years in retirement. How much do you expect to leave as bequest to your beneficiaries?

A. $5,290,721

B. $2,100,842

C. $8,578,258

D. $9,729,112

3. You want to have $35,000 three years from now to buy a new car, and plan to make one deposit today to fund this expenditure . How much does he have to deposit if he can earn 3.6% per year on his savings ?

A) $29,908.2

B) $30,265.2

C) 22,483.3

D) $31,476.7