+8 You are planning to save for retirement over the next 25 years. To do this, you will invest $880 a month in a stock account and $480 a month in a bond account. The return of the stock account is expected to be 10.8 percent, and the bond account will pay 6.8 percent. When you retire, you will combine your money into an account with an 7.8 percent return. How much can you withdraw each month from your account assuming a 20-year withdrawal period? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
1) Your $880 in Stock acct. over 25 years @ 10.8% will grow to =$1,339,663.24
2) Your $480 in Bond acct. over 25 years @ 6.8% will grow to =$376,750.02
3) The total in your retirement account will be $1,339,663.24+$376,750.02=$1,716,413.26
4) From the amount in 3 above, you can withdraw a monthly payment of =$14,143.86 each and every month for 20 years, or 240 payments.
