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5. (18 points) You are planning to retire in 30 years. You currently have $50,000...

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5. (18 points) You are planning to retire in 30 years. You currently have $50,000 in a stock account and $80,000 in a bond account. You plan to invest $5,000 per year in your stock account and $5,000 per year in your bond account for the next thirty years (i.e. from t=1 to t=30 ). The stock account is expected to earn 8% return per year (compounded annually) and the bond account is expected to earn 5% return per year (compounded annually) indefinitely. When you retire in 30 years, you plan to withdraw an equal amount of money for each of next 20 years (i.e., t=31 to t=50 ), so that there will be nothing left in the account at the end of t=50. Additionally, when you retire, you will transfer all your money to an IRA account from which you expect to earn 7% per year (compounded annually). How much can you withdraw each year? What would your answer be if you plan to bequest or leave $2 million to your children at the end of t=50 ? Please be specific

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