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In: Finance

You are planning for your retirement and have decided the following: you will retire in 40...

You are planning for your retirement and have decided the following: you will retire in 40 years and will make monthly deposits into your retirement account of $300 for the next 15 years and then monthly deposits of $750 for the remaining 25 years until retirement. This account earns a 7% rate of return, compounded monthly. In addition, you will inherit $50,000 7 years from today. The inheritance will be deposited into an account that will earn 10% per year until year 20 and then 15% per year after that (compounded annually). You expect to live 30 years past retirement and wish to make equal monthly withdrawals from your account. How much will you be able to withdraw each month if the account that holds your retirement money makes a 4% return, compounded monthly?

$13,256.88

$18,987.11

$9,300.50

$11,244.87

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Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 1 year ago
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