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.


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

Ask Question & Get Answers from Experts
Browse some more (Financial Management) Materials
Which one of the following is a requirement of the two-stage dividend growth model? Which one of the following statements concerning beta is correct? Main Street Antiques is p
Twenty year self liquidating mortgage with five years remaining on the term. Interest rate is 8% and current five year treasury is 1.59%. What is the yield maintenance penalty
Consider the following financial statement information for the Ayala Corporation: Item Beginning Ending Inventory $ 10,300 $ 11,300 Accounts receivable 5,300 5,600 Accounts pa
A summary of your interview that includes who you interviewed, a brief description of his or her role and responsibilities within the organization, and how the interview was
Using the information below -- what was Bala Industries’ Cash Flow from Financing for the year ending 6/30/2011? Increase in inventories $32 Purchased treasury stock $17 Purch
Consider a 10-year, $1000 coupon bond, redeemable at par, and assume that the coupon is paid continuously with an annual coupon rate of 5%. The bond is said to be callable, if
A local finance company quotes an interest rate of 15.6 percent on one-year loans. So, if you borrow $36,000, the interest for the year will be $5,616. Is the interest rate on
A bond issued by the Harris Corporation has a coupon rate of 9 ¼ percent. It matures in 2035. If the price in the market is selling for $1,055.00, should you buy this bond? Wh