Withdraw monthly from the account


Problem:

You plan to invest $700 a month in a stock account and $300 a month in a bond account. The return of the stock account is expected to be 11 percent, and the bond account will pay 6 percent. When you retire in 30 years, you will combine your money into an account with a 8% return.

Required:

Question 1: Draw a timeline for this problem, properly label each parameter given in this question for the calculation.

Question 2: How much to withdraw monthly from the account assuming a 25-year withdrawal period?

Note: Please explain comprehensively and give step by step solution.

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Accounting Basics: Withdraw monthly from the account
Reference No:- TGS0889708

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