You are planning for retirement in 20 years and currently have $85,000 in a savings account and $25,000 in a mutual fund. Assuming your savings account returns 4% compounded semi-annually, while your mutual fund will return 9% compounded monthly. How much will you have at the end of 20 years?

b) If you expect to live for 30 years after you retire and at retirement you deposit all of your savings (including the value of the mutual fund) into an account paying 7% compounded annually, how much can you withdraw at the beginning of each month?

Answer rating: 100% (QA)

To calculate the total amount you will have at the end of 20 years we need to calculate the future v... View the full answer