Finance Practice Problems
PROBLEM:

You are trying to plan for retirement in 22 years and currently you have $58,000.00 in a savings account and $89,000.00 in stock. In addition you plan on adding to your savings by depositing $10,000.00 per year in your SAVINGS account at the end of each of the next 5 years and then $17,000.00 per year at the end of each year for the final 17 years until retirement. Assuming your savings account returns 3% compounded annually while your investment in stocks will return 6% compounded annually, how much will you have when you retire in 22 years? [Ignore taxes.]

ANSWER:
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