A couple is saving for retirement with three different accounts. The table below shows the current balances in their accounts, along with their yearly contribution, and the yearly return on each account. The couple will retire in 20.00 years and pool the money into a savings account that pays 3.00% APR. They plan on living for 29.00 more years and making their yearly withdrawals at the beginning of the year. What will be their yearly withdrawal? Answer format: Currency: Round to: 2 decimal places. A couple is saving for retirement with three different accounts. The table below shows the current balances in their accounts, along with their yearly contribution, and the yearly retum on each account. The couple will retire in 20.00 years and pool the money into a savings account that pays 3.00% APR. They plan on living for 30.00 more years and making their yearly withdrawals at the beginning of the year. What will be their yearly withdrawal? SOLUTION: By hand: Find the FV of each account individually and sum up to find the savings at retirement. FVofsavings=PVx(1+r)N+rPMTx((1+r)N1) Fidelity: FVofsavings=$25,000x(1.06)20+.06$1,000((1.06)201)=$116,963,98 Vanguard: FVofsavings=$200,000x(1.07)20+.07$10,000((1.07)201)=$1,183,891.82 Vanguard: FVofsavings=$200,000x(1.07)20+.07$10,000x((1.07)201)=$1,183,891.82 401k : FVofsavings=$300,000x(1.06)20+.06$15,000x((1.06)201)=$1,513,924.51 Total FV of Savings =$116,963.98+$1,183,891.82+$1,513,924.51=$2,814,780.30 Next convert FV of savings into a yearly payment: FV of savings = PV of retirement withdrawals PV=rPMTx(1(1+r1)N)x(1+r)$2,814,780.30=0.03PMTx(1(1.031)30)(1.03)PMT=$139,425.25 USING FINANCIAL CALCULATOR: FV of parh arrnunt FVofFidelity=$116,963.98FVofVanguard=$1,183,891.82FVofEmployer401k=$1,513,924.51SUM=$2,814,780.30 FIND PMT FOR RETIREMENT (SET TO BEGIN) PMT=$139,425.25 USING EXCEL: Find the FV of each account: FIDELITY: = FV (6%,20,1000,25000,0)=$116,963.98 VANGUARD: =FV(7%,20,10000,200000,0)=$1,183,891,82 EMPLOYER 401k: =FV(6%,20,15000,300000,0)=$1,513,924.51 SUM=$2,814,780.30