What is the nominal dollar amount of your last withdrawal

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Real Cash Flows You are planning to save for retirement over the next 30 years. To save for retirement, you will invest $950 a month in a stock account in real dollars and $450 a month in a bond account in real dollars. The effective annual return of the stock account is expected to be 12 percent, and the bond account will earn 7 percent. When you retire, you will combine your money into an account with an 8 percent effective return. The inflation rate over this period is expected to be 4 percent. How much can you withdraw each month from your account in real terms assuming a 25-year withdrawal period? What is the nominal dollar amount of your last withdrawal?

Reference no: EM131419252

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