You are planning to save for retirement over the next 15 years. to do this, you will invest $1,100 a month in a stock account and $500 a month in a bond account. the return on the stock account is expected to be 7percent, and the bond account will pay 4 percent. when you retire, you will combine your money into an account with a 5 percent return. how much can you withdraw each month during retirement assuming a 20-year withdrawal period?

(a) $2,636.19
(b) $2,904.11
(c) $3,008.21
(d) $3,037.36
(e) $3,406.97

C  $ 3,113.036

Explanation:

First step will be calcualte the future value of the bond and stock funds:

C       1,100

time180 ( 15 years x 12 months)

rate0.005833333 (7% divided into 12 months)

PV$348,658.5264

C        500

time180

rate0.003333 (4% divided by 12 months)

PV$123,045.2441

total fund: 348,658.5264 + 123,045.2441 = 471,703,7705

Then this will be placed to yield 5% and we will do motnly withdrawals:

we need to calcualte the PTM of this annuity:

PV  $471,703.77

time240

rate0.004166667

C  $ 3,113.036

b. condominum i think

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