At age 37, Paul Li decides to plan for his retirement at age 67. He currently has a net worth of about $46,000 including the equity in his home. He assumes that his employer will
contribute $3500 to his retirement plan at the end of each year for the next 30 years. He plans to put one-half of his money in a mutual fund containing stocks and the other half in a mutual fund containing bonds.
1. Estimate Li's future accumulation if his net worth grows at 5% and the mutual funds with stocks and bonds grow at 10% and 6% respectively
