Question: (Complex present value) You are trying to plan for retirement in 8 years, and currently you have $110,000 in a savings account and $330,000 in
(Complex present value) You are trying to plan for retirement in 8 years, and currently you have $110,000 in a savings account and $330,000 in stocks In addition, you plan on adding to your savings by depositing $11,000 per year in your savings account at the end of each of the next 4 years and then $22,000 per year at the end of each year for the final 4 . yoars untis retirement a. Assuming your savings account returns 5 percent compounded annualy, and your investment in stocks will return 10 percent compounded annualy, how much will you have at the end of 8 yoare? (lignore taxes?) b. If you expect to live for 15 years after you retire, and at retirement you deposit all of your savings in a bank account paying 8 percent, how much can you withdraw each year atter retirement (15 equal withdrawals beginning 1 year after you rotire) to end up with a zoto balance upon your death? a. H your savings account returns 5 percent compounded annwally. how much will you have at the end of 8 years in your savings account? (ignore tares.) (Round to the nearest cent)
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