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You are planning to save for retirement over the next 20 years. To do this, you...

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Finance

You are planning to save for retirement over the next 20 years.To do this, you will invest $1,100 a month in a stock account and$800 a month in a bond account. The return of the stock account isexpected to be 10 percent, and the bond account will pay 6 percent.When you retire, you will combine your money into an account with areturn of 8 percent. How much can you withdraw each month from youraccount assuming a 20-year withdrawal period?

A.120,943.05

B.9877.02

C.10,208.16

D.513,326.32

E.10,078.59

Answer & Explanation Solved by verified expert
3.9 Ratings (706 Votes)
Amount invested in stock each month S 1100 at interest rate r1 10 Amount invested in Bond each month B 800 at interest rate r2 6 Number of    See Answer
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