You are trying to plan for retirement in 12 years and currently you have $120,000...
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You are trying to plan for retirement in 12 years and currently you have $120,000 in a savings account and $240,000 in stocks. In addition, you plan to add to your savings by depositing $4,800 perquarterin your savings account at the end of eachquarterforthe next12years until retirement.
(5 points)Assume that your savings account returns8percent compoundedquarterlyand your investment in stocks will return 12 percent compoundedquarterly. How much will you have at the end of 12 years?
(5 points)If you expect to live 25 years after you retire, and at retirement you deposit all of your savings in a bank account paying 6 percent, how much can you withdraw at the beginning of eachmonthafter retirement to end up with a zero-balance at death?
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