(Answered) You are planning to save for retirement over the next 25

Finance

You are planning to save for retirement over the next 25 years. you will invest $820 per month in a stock account and $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 earn 6.2 percent. When you retire, you will combine your money into an account with an annual return of 7.2 percent. Assume the returns are expressed as APRs.

How much can you withdraw each month from your account assuming a 20-year withdrawal period?

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92779867
Price:- $20

Verified Expert

Priced at $40 Now at $20, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Basic Finance

International finance please show all work whether in excel

International Finance. Please show all work whether in Excel or Word Assume that Calumet Co. will receive 10 million pesos in 15 months. It does not have a relationship with a bank at this time, and therefore cannot obt ...

A client has identified two annuities that are available

A client has identified two annuities that are available for purchase, The first annuity pays $1,000 at the end of each month over a 3-year period at a nominal rate of 13% p.a. The second annuity pays $3,000 at the end o ...

How to find efffective annual rate of interest the terms of

How to find efffective annual rate of interest. The terms of sale are 4/10, net 49. How to find the required rate of return on equity. ABC Inc.'s stock is currently selling for $69.97 per share. The company just paid it ...

An all-equiry business has 175m shares outstanding selling

An all-equiry business has 175M shares outstanding selling for $20/share. Management believes interest rates are unreasonably low and decides to execute a leveraged recapitalization. It will raise $1B in debt and repurch ...

You are a junior analyst and you have been asked to

You are a junior analyst and you have been asked to forecast sales for lululemon for 2012. At the end of 2011, lululemon operated 147 corporate stores in North America (42 in Canada and 105 in the US). Lululemon plans to ...

You are 25 years old and have not started saving for

You are 25 years old and have not started saving for retirement yet. You want to retire at 55. You want $1,000,000 in your account. You can earn 5% on average over the next 30 years. How much do you have to save each mon ...

You will receive a payment of 10000 per year forever

You will receive a payment of $10,000 per year forever; however the first payment will not begin for 9 years. If the appropriate interest rate is 7%, what is this worth today? Is this 10,000/.07 for 142,857.14? Does it m ...

How many years will it take for 197000 to grow to 554000 if

How many years will it take for 197,000 to grow to 554,000 if it is invested in an account with a quoted annual interest rate of 8% with monthly compounding of interest?

Your parents are giving you 190 a month for 4 years while

Your parents are giving you $190 a month for 4 years while you are in college. At an interest rate of .45 percent per month, what are these payments worth to you when you first start college? $7,912.94 $7,776.51 $10,154. ...

What is the present value of a security that will pay 9000

What is the present value of a security that will pay $9,000 in 20 years if securities of equal risk pay 12% annually? Round your answer to the nearest cent

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Basic Finance Expert