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1. You are planning to save for retirement over the next 31 years. To do this,...

1. You are planning to save for retirement over the next 31 years. To do this, you will invest $570 per month in a stock account and $451 per month in a separate bond account. The return of the stock account is expected to be 12%, and the bond account will pay 6%. When you retire, you will combine your money into an account with an expected 9% return. How much will be in the bond account at retirement?

2. You are planning to save for retirement over the next 27 years. To do this, you will invest $893 per month in a stock account and $223 per month in a separate bond account. The return of the stock account is expected to be 12%, and the bond account will pay 6%. When you retire, you will combine your money into an account with an expected 9% return. How much can you withdraw each month in retirement from your account assuming a 20-year withdrawal period?

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Home nert Page Layout Formulas Data Review View dd-Ins Cut Σ AutoSum ー E ゴWrap Text General ta copy ▼ в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 C Paste Conditional Format CeInsert Delete Format Formatting, as Table w styles. ▼ ㆆ ▼ Sort &Find & 2 ClearFe Select Edting Format Painter Clipboard Font Alignment Number Styles Cells GP171 GO GP GQ GR GS GT GU GV GW GX GY 159 160 161 162 163 164 165 166 167 168 169 170 1 FUTURE VALUE OF INVESTMENT IN STOCK PMT YEARS periods in a year RATE FV 570 12 12.0% 2252010.47 excel FV(GR165/GR164,GR163*GR164,-GR162) FUTURE VALUE OF INVESTMENT IN BOND PMT 451 172 173 174 175 176 12 periods in a year RATE FV 6.0% 486541.91 excel=FV(GR173/GR172,GR171*GR172,-GR170) ANSWER AMOUNT IN BOND ACCOUNT AT RETIREMENT = 486541.91 44M CALCULATOR LOAN OPTIONS pv, fv, annuity CAP STRU VALUE BOX DILUTION DOLLAR COST AVGMORTGAGE EXPO Sheeti Sheet2 ShelI rences: x261 福 130% 14:05 27-01-2019

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Home nert Page Layout Formulas Data Review View dd-Ins Cut E AutoSum ー E ゴWrap Text General aCopy ǐ锂困Merge & Center. $, % , Insert Delete Format Paste Format Painter B 1 -. ,, . Conditional Format CeInsert Delete Format Formatting as Table Styles2 Clear FO national asormat ,Styles ▼ Sort &Find & Filter Selectマ Ξ Clear Clipboard Font Alignment Number Styles Cells Edting GQ294 GO GP GR GS GT GU GV GW GX GY 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 309 310 311 44M CALCULATOR LOAN OPTIONS pv, fv, annuity CAP STRU VALUE FUTURE VALUE OF INVESTMENT IN STOCK PMT YEARS periods in a year RATE FV 893 27 12 12.0% 2154460.84 EXCEL-FV(GR301/GR300,GR299*GR300,-GR298) FUTURE VALUE OF INVESTMENT IN BOND PMT YEARS periods in a year RATE FV 223 27 12 6.0% 179859.95 EXCEL FV(GR309/GR308,GR307*GR308,-GR306) BOX DILUTION DOLLAR COST AVGMORTGAGE EXPO Sheeti Sheet2 ShelI rences: x261 27-01-2019Home nert Page Layout Formulas Data Review View dd-Ins s Cut aCopy Σ AutoSum Calibri Wrap Text General в 1 프· ー· 鱼, Δ. :r-ㄧ 逻锂函Merge & Center. $, % , 弼,8 C Paste Conditional Format CeInsert Delete Format Formatting as Table Styles2 Clear Sort &Find & Format Painter Clipboard Font Alignment Number Styles Cells Edting GO315 GO GP GQ GR GS GT GU GV GW GX GY 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 1 CALCULATOR , LOAN OPTIONS | TOTAL FUTURE VALUE AT THE END OF 27 YEARS FROM STOCK FROM BOND TOTAL AMOUNT 2154460.84 179859.95 2334320.80 NOW WE HAVE TO CALCULATE HOW MUCH EACH MONTH HE CAN WITHDRAW PV TIME periods in a year RATE PMT 2334320.80 20 12 9% ANS 21,002 PMT(GR325/GR324,GR323*GR324,-GR322) CAP STRU VALUE LOCK BOXDILUTION DOLLAR COST AVGMORTGAGE EXPO Sheeti Sheet2She rences: x261 14:10 27-01-2019

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