PROBLEM:

You are trying to plan for retirement in 19 years and currently you have $72,000.00 in a savings account and $10,000.00 in stock. In addition you plan on adding to your savings by depositing $19,000.00 per year in your SAVINGS account at the end of each of the next 1 years and then $5,000.00 per year at the end of each year for the final 18 years until retirement. Assuming your savings account returns 8% compounded annually while your investment in stocks will return 5% compounded annually, how much will you have when you retire in 19 years? [Ignore taxes.]

ANSWER:
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