Stock Bond

C 750 250 Option 1

r 11% 6%
r per month 0.009167 0.005
t 30 30
t in months 360

C/R (1+r)^t-1 FV of annuity

Stock 81818.18 25.708097584 2103389.8023
Bond 50000 5.0225752123 251128.76061
FV of annuity 2354518.5629

Option 2

r 8.0% We need to solve c

r 0.006667 C/R 1-1/(1+r)^t
t 25 C/0.0066 0.99999956 1-1/(1+r)^t
t 300 2354517
We need to solve c here

0.864
0.005758423
13558.31438
 Number of
times
EAR compouned (EAR+1)^(1/m)-1 APR
0.089 Semiannualy 0.043551627856 0.087103
0.188 Monthly 0.014459476399 0.173514
0.10 Weekly 0.001904502571 0.099034

Infinite
(Continous
0.136 compounding) 0.127513

Note: When compouned infinitely APR = ln(1+r)

 Number of
APR times compouned EAR
0.067 Quarterly 0.068702251
0.124 Monthly 0.131295813
0.10 Daily 0.102948277
0.084 Infinite 0.087628894

Note: EAR when compouned infinitely = exp(r)-1

Growing perpetuity casflow when t =2
r 0.1
c 215,000
g 0.038

r-g PV(0) C/(1+R)

PV(1)
 Stock Bond Situation 1 : how much corpus you will have at retirement (FV)
C 750 250
r 11% 6%
r per month 0.009167 0.005
t 30 30 Stock Bond
t in months 360 c/r 81818.18 50000
(1+r)^t-1 25.7081 5.022575
FV annuity 2103390 251128.8 2354519

1.009167
26.7081
e at retirement (FV) Situation 2: Post retirement disbursal of corpus
C =?
r 0.006667

(1-1/(1+r)^t

C 0
c 48000 c/r-g
r 0.1 1-(1+g/(1+r)^t
g 0.04
t 5
(1+g) 1.04
1+r 1.1
r-g 0.06
(1+r) 1.1
Cost 135000