You are planning your retirement in 10 years. You currently have $150,000 in a bond account and

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You are planning your retirement in 10 years. You currently have $150,000 in a bond account and $450,000-in a stock account. You plan to add $9,000 per year at the end of each of the next 10 years to your bond account. The stock account will earn an 11.5 percent return and the bond account will earn a 7.5 percent return. When you retire, you plan to withdraw an equal amount for each of the next 25 years at the end of each year and have nothing left. Additionally, when you retire you will transfer your money to an account that earns 6.75 percent. How much can you withdraw each year?

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Essentials Of Corporate Finance

ISBN: 9780073405131

6th Edition

Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan

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