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 6 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 6 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? Vote hawUS LE... Interest Factors for the Present Value of an Annuity of One Dollar Period 1 2 3 0.990 0000 00710.997 0.052 0943 09350 926 0.917 0.909 0 892 0 877 0.862 0.847 0.833 0.806 0.781 0.750 0.735 1970 1.942 1913 1.886 1.859 1833 1.808 1.783 1759 1.736 1.6901.647 1.605 1.566 1.528 1.457 1.392 1.332 1.276 2041 28842029 2.775 2.723 2673 2624 2.577 2531 2.487 2.402 2.322 2246 2174 2.106 1.981 1.868 1.766 1674 29022 BOX 2.717 2.630 2 546 3.465 2.87 3.3123 240 3.170 3037 2.914 2.798 2.690 2.589 2.404 2.2412096 1966 482 4.7124580 4.452 4270 4.212 4100 3.993 3.890 3.791 3.605 3.433 3.274 3.127 2.991 2.745 2.532 2.345 2.181 5 6 7 6 8 5.795 5601 5.417 5.2425 .076 4.917 4.766 4.623 4.486 4.355 4.111 3.8893.685 3.498 3.326 2.020 2.759 2.534 2709 .728 6.472 6230 6.0025.786 5.582 5.389 5.206 5033 4,868 4,564 4288 4.039 3.812 3.605 3.242 2.937 2 678 2.455 7652 725 2020 6.733 6.462 6210 5971 5.747 5535 5335 4.968 4 639 4.344 4078 3.837 3.421 3076 2 786 2540 .566 8162 Z786 7.435 7108 6.802 6515 6 247 5.985 5.759 5328 4 946 4,607 4.303 4,031 3.566 3.184 2.868 2.603 9.471 89838.530 8.111 77227.360 7024 6.710 6.418 6145 5.650 5.216 4,833 4.494 4.193 3.682 3.269 2.930 2.650 9 8 10 11 12 13 14 15 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.1296.805 6.495 5.988 5.453 5.029 4.656 4.327 3.776 3.335 2.978 2.683 11 255 10 575 90540 25 8 863 8.384 7943 7536 7161 6814 6.194 5.660 5.197 4.793 4.439 3.851 3.387 3 012 2.70 12 134 11.348 10.635 99869.394 8.534 835B 7904 7487 Z102 6.424 SB42 5.3424.910 4.532 3912 3.427 3040 2.72 13.004 12 106 11.296 10.563 9899 9.205 8.745 8.244 7.786 7367 5.628 6.002 5,468 5.00 4.611 3962 3.459 3.061 2740 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8,060 7.606 6,811 6.142 5.575 5.092 4.675 4.001 3.483 3.076 2.750 16 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.312 7.824 6.974 6.265 5.669 5.167 4.730 4,003 3.503 3.088 2 58 17 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 3.097 276 18 16 398 14.992 12.754 12.659 11.690 10.828 10.059 9372 8.756 8.2017.250 6.467 5.818 5.273 4.812 4 080 3.529 3.104 2 1917 226 15.678 14,324 13 134 12.ORS 11.158 10.336 9.604 8.950 82657366 6550 5.877 5 316 4 844 40973.539 3.109 2.20 2018.046 16351 14.877 13.590 12.462 11.470 10.594 9.818 9.128 8.514 2469 6,623 5.929 5.353 4.870 4.110 3.546 3.113 2.72 2 22.023 19 522 17413 15.622 14.094 12.782 11.654 10.675 9.8239.077 7843 6,873 6.097 5.467 4.948 4.147 3.564 1.122 2776 30 25.808 22.937 19.600 17.292 15.373.13.765 12.409 11.258 10.274 9.427 8.055 7003 6.177 5517 4.979 4.160 3.569 3.124 2.778
