What will be the nominal dollar amount of the last withdraw

Reference no: EM13292944

You are planning to save for retirement over the next 24 years. To save for retirement, you will invest $620 a month in a stock account in real dollars and $330 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 8 percent. When you retire, you will combine your money into an account with an 9 percent effective return. The inflation rate over this period is expected to be 2 percent. Assuming a 21-year withdrawal period, what will be the nominal dollar amount of the last withdraw?

Reference no: EM13292944

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