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You are planning your retirement in 10 years

Finance Aug 11, 2020

You are planning your retirement in 10 years. You currently have €150,000 in

a bond account and €450,000 in a stock account. You plan to add €9,000 per year at the

end of each of the next 10 years to your bond account only. The stock account will earn

an 11.5% return and the bond account a 7.5% return. When you retire, you plan to

withdraw an equal amount for each of the next 25 years at the end of each year and have

nothing left. Additionally, when you retire you will transfer your money to an account

that earns 6.75%. How much can you withdraw each year?

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