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You have an IRA worth $200,000 and want to start to make equal, annual withdrawals (i.e., distributions fro the account) for 20 years. You anticipate

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You have an IRA worth $200,000 and want to start to make equal, annual withdrawals (i.e., distributions fro the account) for 20 years. You anticipate earning 5 percent on the funds. (To facilitate the calculation, assum 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? 5

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