# You are planning your retirement in 10 years. You currently have $171,000 in a bond account and$611,000

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1. lizz1228 says:

$194,767.71 Explanation : As per the data given in the question, Future value of ordinary annuity = C × [(1+i)^n - 1 ÷ i] value of bond =$171,000 × (1+0.0775)^10 + $6,900 × ((1+0.0775)^10 - 1) ÷ 0.0775 =$360,718.90 + $98,778.37 =$459,497.27

Now

Future value of stock = $6,11000 × (1+0.1125)^10 =$1,774,358.645

Combined value = $459,497.27 +$1,774,358.645

= $2,233,855.92 After solving this, we need to apply the PMT formula for yearly payment i.e to be shown below NPER = 24 years RATE = 7% PV =$2,233,855.92

FV= 0

The formula is shown below:

= PMT(RATE;NPER;-PV;FV;0)

The present value comes in negative

After applying the above formula, the yearly payment is \$194,767.71

$You are planning your retirement in 10 years. You currently have 171,000 in a bond account and 611$