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You have an IRA worth $ 2 5 0 , 0 0 0 and want to start to make equal, annual withdrawals ( i .

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 5 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 5 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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