Question: 1 . Suppose you plan to save $ 8 , 0 0 0 per year for the 3 5 years you are working. Assume you

1. Suppose you plan to save $8,000 per year for the 35 years you are working. Assume you begin saving in year 1. In addition to the amount you save each year, you expect to sell your house for $600,000 in year 32 and deposit this money into your account. How much can you withdraw in equal amounts each year for the 30 years you are retired? The interest rate you will earn during the 35 years you are saving is 7%. Once you retire, youll reduce the amount of stock you have in your portfolio, and you will now earn a return of 5% during the 30 years you are retired. Assume you begin saving in one year, and your first withdrawal is in year 36. show all work.

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