You are planning to save for retirement over the next 40 years. To do this, you...

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Finance

You are planning to save forretirement over the next 40 years. To do this, you plan to invest$5,000 a year in a stock account at the beginning of each year. In10 years, you plan to diversify your portfolio by investing $3,000a year in a bond account. The return of the stock account isexpected to be 8 percent, and the bond account will pay 4 percent.When you retire, you will combine your funds into an account with a7 percent return.
Estimate the value of your portfolio at the end of your savingperiod (in 40 years).
How much can you withdraw each year from your account, assuminga 30-year withdrawal period?

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a Amount invested in stock account P1 5000 Number of Investment Periods n1 40 Return r1 8 Value of stock account after 40 years P11r1n1 P11r12 P11r1 P1 See Answer

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