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Problem 7 - 1 7 You have an IRA worth $ 2 0 0 , 0 0 0 and want to start to make equal,
Problem
You have an IRA worth $ and want to start to make equal, annual withdrawals ie distributions from the account for years. You anticipate earning 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 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?
$
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