You are trying to plan for retirement in 10 years. You have 150,000 savings account and 250,000 in stocks. In addition you plan to deposit $8,000 per year into your savings account at end of each of the next 5 years and then 10,000 per year at the end of each year for the final five years until you retire.
A. Assume your savings account returns 8 percnet annually and your stocks will return 12 percent annually.
How much will you have at the end of 10 years in your savings account?
How much will you have at the end of 10 years for investments in stocks?
Therefore how much will you have at the end of 10 years?
B. If you expect to live for 20 years and at the end of retirement you deposit all of your savings into a bank account paying 11 percent, how much can you withdraw each year after retirement? (20 equal withdrawals beginning one year after you retire) to end up with zero balance after death.
Mostly stuck on part b i get the number 19125.74 but dont know what to do with it. round all answers to the nearest cent