You just started your first full time job out of college. You recall from your finance...

90.2K

Verified Solution

Question

Finance

You just started your first full time job out of college. Yourecall from your finance course the importance of starting to saveearly for retirement. You plan on making deposits of $215 per paycheck into a stock account and $130 per pay check into a bondaccount. You are paid every two weeks (26 pay checks per year). Itis your plan to make these deposits for the next thirty-years. Youexpect that you will earn 8.75% per year on the stock account and5.5% on the bond account. When you retire in thirty-years you planon depositing the balance the money into a money-market accountthat you expect should pay 2%. How much could you withdraw monthly,and have the money last for the next thirty years?

Answer & Explanation Solved by verified expert

4.0 Ratings (544 Votes)

SEE THE See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

You just started your first full time job out of college. Yourecall from your finance course the importance of starting to saveearly for retirement. You plan on making deposits of $215 per paycheck into a stock account and $130 per pay check into a bondaccount. You are paid every two weeks (26 pay checks per year). Itis your plan to make these deposits for the next thirty-years. Youexpect that you will earn 8.75% per year on the stock account and5.5% on the bond account. When you retire in thirty-years you planon depositing the balance the money into a money-market accountthat you expect should pay 2%. How much could you withdraw monthly,and have the money last for the next thirty years?