You Are Planning to Save for Retirement Over the Next

question 10

Multiple Choice

You are planning to save for retirement over the next 15 years.To do this,you will invest $1,100 a month in a stock account and $500 a month in a bond account.The return on the stock account is expected to be 7 percent,and the bond account will pay 4 percent.When you retire,you will combine your money into an account with a 5 percent return.How much can you withdraw each month during retirement assuming a 20-year withdrawal period?

• A)$2,636.19
• B)$2,904.11
• C)$3,008.21
• D)$3,113.04
• E)$3,406.97

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Definitions:

Menopause

Permanent cessation of the menstrual cycle.

Climacteric

A phase of aging in both sexes marked by reduced fertility and the decrease of reproductive hormones.

Genetic Variation

The diversity in gene frequencies within a population, which contributes to differences among individuals.

Random Assortment

The process during meiosis where chromosomes are randomly segregated to gametes, contributing to genetic variation.