Question

you wish to retire in 12 years and currently have $50,000 in a savings account yielding 5% annually and $100,000 in quality blue Chip stocks yielding 10% if you expect to add $30,000 at the end of each year to your stock before lose how much will you have in your retirement fund when you retire use appendix a and appendix eat answer the question round your answer to the nearest dollar

what rate of return must you earn on your retirement funds if you want to withdraw $102,000 per year for the next 15 years after retiring. use appendix d to answer the question. round your answer to the nearest whole number.

not stock before lose. it's should have said stock portfolio**
not appendix eat. should have said appendix b**

Answer 1

		Future Value (Fv) =Cash Flow*((1+i)^N)
		i=Annual Yield
		i=5%=0.05 for Savings account: i=10%=0.1 for Stock
		N=Number of years to the future=12
	A	Future Value on retirement of $50000 in Savings Account	$89,793	(50000*(1.05^12)
	B	Future Value on retirement of $100000 in Stock portfolio	$313,843	(100000*(1.1^12)
		Future Value of $ 30000 per year investment in stock portfolio
			t	N=12-t	CF	FV=CF*(1.1^N)
			Year from today	Years to retirement	Cash Flow	Future Value
			1	11	$30,000	$85,594
			2	10	$30,000	$77,812
			3	9	$30,000	$70,738
			4	8	$30,000	$64,308
			5	7	$30,000	$58,462
			6	6	$30,000	$53,147
			7	5	$30,000	$48,315
			8	4	$30,000	$43,923
			9	3	$30,000	$39,930
			10	2	$30,000	$36,300
			11	1	$30,000	$33,000
			12	0	$30,000	$30,000
					SUM	$641,529
	C	Amount accumulated from annual investment at retirement	$641,529
	D=A+B+c	Total amount in retirement Fund	$1,045,164
		RATE OF RETURN REQUIRED DURING RETIREMENT:
	Pv	Amount available in retirement fund	$1,045,164
	Nper	Number of annual withdrawal	15
	Pmt	Amount of annual withdrawal required	$102,000
	RATE	Rate of return required	5.19%	(Using RATE function of excel with Nper=15,Pmt=102000, Pv=-1045164)
		Rate of return required	5%