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
A 25-year maturity bond has a 9% coupon rate, paid annually. It sells today for $1,027.42. Calculate the annual return for the 25-year maturity bond over the next five years
McKenna Sports Authority is getting ready to produce a new line of gold clubs by investing $1.85 million. The investment will result in additional cash flows of $525,000, $827
For Fire Safety Department, what are the internal factors affecting selection and training? For Fire Safety Department, what are the external factors affecting selection and t
Liquidity ratios indicate how fast a company can generate cash to pay bills. Financial ratios are exclusively used for those areas of business that involve investment decision
A woman earned wages of $42,100, received $2800 in interest from a savings account, and contributed $2900 to a tax-deferred retirement plan. She was entitled to a personal exe
Tierney Enterprises is constructing its cash budget. Its budgeted monthly sales are $7,000, and they are constant from month to month. 40% of its customers pay in the first mo
You have placed an order to purchase 260 shares of every IPO that comes to market. The next two IPOs are each priced at $25 a share and will begin trading on the same day. You
Which of the following statements is false? Money can always function as a store of purchasing power, even if its value is relatively unstable. The ease with which an asset ca