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You have an IRA worth $200,000 and want to start to make equal, annual withdrawals (l.e., distributions from the account) for 15 years. You anticipate

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You have an IRA worth $200,000 and want to start to make equal, annual withdrawals (l.e., distributions from the account) for 15 years. You anticipate earning 4 percent on the funds. (To facilitate the calculation, assume an ordinary annulty.) 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? S d. How much do you eam 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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