You are trying to plan for retirement in 10 years and currently you have $150,000 in a savings account and $250,000 in stocks. In addition, you plan to add to your savings by depositing $10,000 per years in your savings account at the end of each of the next 10 years until retirement.
a. Assuming your account returns 12% compounded annually, how much will you at the end of 10 years.
b. If you expect to live 20 years after you retire, and at retirement, you deposit all your savings in a bank account paying 11%, how much can you withdraw each year after retirement (20 equal withdrawals beginning 1 year after you retire) to end up with a zero-balance at death?