kmarks Window Help 9% t53 Sat 12:25 AM ezto.mheducation.com Your Retirement in 1
ID: 2816600 • Letter: K
Question
kmarks Window Help 9% t53 Sat 12:25 AM ezto.mheducation.com Your Retirement in 10 Years.You Chegg.com E connect FINANCE HOMEWORK 1 instructions help Question 10 (of 100)> Save&Exit Submit 1.00 points You did not receive full credit for this question in a previous attempt Problem 5-44 Annuity Values [LO 1 You are planning your retrement in 10 years. You currenty have $172.000 in a bond account and $612,000 in a stock account You plan to add $6,800 per year at the end of each of the next 10 years to your bond account. The stock account will earn a return of 10.5 percent and the bond account w year and have nothing left. Additionally, when you retire you will transfer your money to an account that earns 6.25 percent lilean a retu of 7 percent When you retire, you plan to withdraw an equal amount for each of the next 23 years at the end of each much can you withdraw each year in your retirement? (Do not round Intermediate calculations and round your answer to 2 decimal places, o.g, 32.16 Annual withdrawal amount163,742.51 References Book& Resources Worksheet Difficulty.2 ntermediateSection: 5.2 valuing Level Cash Flows: Annuities and Problem 5-44 Annuity Leaming Objective: 05-01 Values [LO 1 Determine the future and present value of investments with multple cash flowsExplanation / Answer
Future Value of bond account in 10 years=FV(7%,10,6800,172000)=$432,301.88
Future Value of stock account in 10 years=FV(10.5%,10,0,612000)=$1,661,017.48
Amount to be withdrawn during retirement=PMT(6.25%,23432301.88+1661017.48,0)=173977.05
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.