+1-415-670-9189
info@expertsmind.com
Annual withdrawal amount
Course:- Financial Management
Reference No.:- EM13942961




Assignment Help
Assignment Help >> Financial Management

You are planning your retirement in 10 years. You currently have $162,000 in a bond account and $602,000 in a stock account. You plan to add $7,800 per year at the end of each of the next 10 years to your bond account. The stock account will earn a return of 11 percent and the bond account will earn a return of 7.5 percent. When you retire, you plan to withdraw an equal amount for each of the next 23 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.

Required:

How much can you withdraw each year in your retirement? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Annual withdrawal amount:




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Financial Management) Materials
Discuss the validity/invalidity of the following statements. If reserve requirements were set equal to 100 percent, there would be no moral hazard problem in the banking indus
Construct a list of steps for making a cash withdrawal from an automated teller machine (ATM). Assume that the process begins at the ATM with your bank card in hand. Then iden
Simon recently received a credit card with an 18% nominal interest rate. With the card, he purchased an Amazon Kindle for $350. The minimum payment on the card is only $10 per
Assume that Atlas Sporting Goods Inc. has $860,000 in assets. If it goes with a low-liquidity plan for the assets, it can earn a return of 17 percent, but with a high-liquidit
You can relate this discussion to other disciplines. For example, Finance. When you have little money, you consume less of everything... except some products, such as sausages
Values, Norms, and Attitudes Initial Post - Elaborate on how it would impact you and your family if you were going to work in a foreign country for 18 months or longer. Be sur
Assume that you have only two assets from which to choose: one-year zero coupon bonds; and junk bonds with a duration of 9.0 years. If you have a liability portfolio with dura
The Miller Brewing. has developed a new type of Beer. The local distributor expects to increase his sales by 20% over the past year due to this new development. Last year's sa