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You have an IRA worth $250,000 and want to start to make equal, annual withdrawals (i.e., distributions from the account) for 15 years. You anticipate
You have an IRA worth $250,000 and want to start to make equal, annual withdrawals (i.e., distributions from the account) for 15 years. You anticipate earning 4 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 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? \$ e. How much will be in the account at the end of the second year? \$ You have an IRA worth $250,000 and want to start to make equal, annual withdrawals (i.e., distributions from the account) for 15 years. You anticipate earning 4 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 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? \$ e. How much will be in the account at the end of the second year? \$
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