Question
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,
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 21.00 years and pool the money into a savings account that pays 3.00% APR. They plan on living for 26.00 more years and making their yearly withdrawals at the beginning of the year. What will be their yearly withdrawal?
| Account | Balance | Yearly Contribution | APR |
|---|---|---|---|
| Fidelity Mutual Fund | $24,762.00 | $1,000.00 | 7.00% |
| Vanguard Mutual Fund | $184,604.00 | $10,000.00 | 7.00% |
| Employer 401k | $301,788.00 | $15,000.00 | 5.00% |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
The Theory Of Interest
Authors: Friedrich A. Lutz
2nd Edition
1138539074,1351472836
