Calculation of Annuities of an Investment

Question

Calculating Annuities:  You are planning to save for retirement over the next 30 years.  To do this, you will invest $800 a month in a stock account and $350 a month in a bond account. The return of the stock account is expected to be 11 percent, and the bond account will pay 6 percent.  When you retire, you will combine your money into an account with 8 percent return.  How much can you withdraw each from your account assuming a 25-year withdrawal period?

Summary

This question belongs to finance and discusses about calculation of annuities of an investment.

Total word count: 28

 

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