Problem 7 17 You have an IRA worth $200,000 and want to start to make equal, anal withdrawals de distributions from the account) for 20 years. You anticipate earning 4 percent on the lunds. To facilitate the calculation, assume an ordinary annuity. Use Appendix D to answer the questions. Round your answers to the nearest dalla a. How much can you withdraw each year? 5 b. Since you are coming 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? $ How much will be in the account at the end of the second year? $ Interest Factors for the Present Value of an Annuity of One Dollar This Period 10% 2 3 4 5 15 4% 5% 6% 7% 8% 12% 16% 1% 20% 22% 28 36% 0.990 0.980 0.971 0.962 0.952 0.943 0935 0.926 0.917 0.909 0.893 0.877 0.862 0.347 0,833 0.806 0.781 0.758 0.735 1.970 1942 1913 1.886 1859 1833 1,808 1.783 1.759 1736 1.690 1.647 1.605 1.566 1.528 1.457 1.392 1332 1.276 2.941 2.884 2829 2.775 2.723 2.673 2624 2.577 2.531 2.487 2402 2.322 2.246 2.174 2.106 1981 1.868 1766 1674 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.798 2690 2589 2.404 2741 2096 1.966 4.853 4.713 4580 4.452 4329 4.212 4.100 3.993 3.890 3.791 3.605 3.433 3.274 3.127 2991 2.745 2532 2345 2.181 6 7 8 9 10 5.795 5.601 5.417 5.242 5.076 4.917 4.766 4.623 4.486 4355 4.111 3.889 3.685 3.498 3326 3.020 2759 2.534 2.399 6.728 6.472 6.230 6.002 5.786 5582 5.389 5.206 5.033 4868 4,564 4.288 4.039 3.812 3,605 3242 2.937 2.678 2.455 7.652 7325 7,020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4968 4,639 4344 4.078 3.837 3.421 3.076 2.786 2.540 8,566 8.162 7.786 74357.108 6802 6.515 6.247 5985 5.759 5328 4.946 4,607 4303 4,031 3.566 3.184 2.868 2.603 9.471 8.983 8.530 8.111 7722 7360 7024 6.710 6.418 6.145 5.650 5.216 4833 4.494 4.193 3682 3 269 2930 2650 18 12 13 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.988 5.453 5.029 4.556 4.327 3.776 3.335 2978 2.683 11.255 10.575 9.954 9.385 8.863 8.384 7943 7.536 7.161 6.814 6.194 5.660 5.197 4.793 4.439 3.851 3387 3.013 2.708 12.134 11.348 10.635 9.986 9.394 8.534 8.358 7904 7.487 7103 6.424 5.842 5.342 4910 4533 3.912 3.427 3.040 2.727 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 2.786 7.367 6.628 6,002 5.468 5.008 4611 3962 3.459 3.061 2.740 13.865 12.849 11.938 11118 10.380 9712 9.108 8.559 8,060 7.606 6.811 6.142 5.575 5.092 4.675 4001 3.483 3.076 2.750 15 16 17 18 19 20 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8312 7.824 6974 6.265 5.669 5.162 4.730 4.003 3503 3.088 2.758 15.562 14.292 13.166 12.166 11 274 10.477 9.763 9.122 8.544 8.002 7.120 6 373 5.749 5.222 4.775 4.059 3.518 3.097 2.763 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 3.201 7.250 6.467 5.818 5.273 4.812 4.080 3.529 3.104 2.767 17.226 15,678 14.324 13.134 12.085 11.158 10.326 9.604 8.950 8.365 7.366 6.550 5.877 5.316 4.844 4.097 3.539 3.109 2770 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.128 8.514 7469 6.623 5 929 5353 4.870 4.110 3.546 3.113 2.772 25 22.023 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.8239.077 7843 6.873 5.097 5.467 4948 4.147 3564 3.122 2.776 30 25.808 22.937 19.600 17.292 15.373 13.765 12.409 11.258 10.274-9.427 8.055 7.003 6.177 5517 4979 4.160 3.569 3.124 2.778