Problem $7-17$

You have an IRA worth $$250,000$ and want to start to make equal, annual withdrawals $($i$.$e$.,$ distributions from the account$)$ for $25$ years. You anticipate earning $4$ percent on the funds. $($To facilitate the calculation, assume an ordinary annuity.$)$ Use Appendix D to answer the questions. Round your answers to the nearest dollar.

a$.$ How much can you withdraw each year?

$

b$.$ Since you are earning $4$ percent on your investments, how much of the withdrawal consumes your investments? $

c$.$ How much will be in the account at the end of the first year?

$

d$.$ How much do you earn on your investments in the account during the second year? $

e$.$ How much will be in the account at the end of the second year?

$