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 20.00 years and pool the money into a savings account that pays 3.00% APR. They plan on living for 25.00 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 | $22,026.00 | $1,000.00 | 6.00% |
| Vanguard Mutual Fund | $189,994.00 | $10,000.00 | 8.00% |
| Employer 401k | $306,201.00 | $15,000.00 | 6.00% |
Answer format: Currency: Round to: 2 decimal places.
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Risk Management And Financial Institutions
Authors: John Hull
1st Edition
0132397900, 9780132397902
