You have an IRA worth $250,000 and want to start to make equal, annual withdrawals (i.e.,...
You have an IRA worth $250,000 and want to start to make equal, annual withdrawals (i.e., distributions from the account) for 20 years. You anticipate earning 5 percent on the funds. (To facilitate the calculation, assume an ordinary annuity.
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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You have an IRA worth $250,000 and want to start to make equal,
annual withdrawals (i.e.,...
Problem 7-17 You have an IRA worth $150,000 and want to start to make equal, annual...
Problem 7-17 You have an IRA worth $150,000 and want to start to make equal, annual withdrawals (i.e., distributions from the account) for 20 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. How much can you withdraw each year? $ Since you are earning 4 percent on your investments, how much of the withdrawal consumes your investments?...
3. A second type of IRA is the "Roth IRA." Suppose you open a Roth IRA...
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You are planning to make 18 monthly withdrawals beginning at the end of the sixth month....
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You are planning to make 18 monthly withdrawals beginning at the end of the sixth month....
You are planning to make 18 monthly withdrawals beginning at the end of the sixth month. You plan to withdraw $105 in the sixth month and increase your withdrawals by $15 over the previous month’s withdrawal. How much should you deposit now in a bank account that pays 12% per year compounded monthly?
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Will rate!! Show work plz You are planning to make 18 monthly withdrawals beginning at the...
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You are planning to make 18 monthly withdrawals beginning at the end of the sixth month. You plan to withdraw $116 in the sixth month and increase your withdrawals by $10 over the previous month's withdrawal. How much should you deposit now in a bank account that pays 12% per year compounded monthly? Enter the answer with two decimal places. Do not enter the dollar (S) symbol. eg. 1234.56 Hint: Determine m and k and...
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PLEASE SHOW HOW YOU WOULD SOLVE USING EXCEL SOFTWARE
You realize the wisdom of starting early at age 22 in saving for your retirement and plan on making 43 equal end of the year annual deposits in an IRA account in hopes of having at least 1,000,000 once you retire at age 65 (immediately after your last deposit into the IRA account) but you think it would be best to have $1,750,000 at age 65 to retire. Answer the following...
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You are planning to make 18 monthly withdrawals beginning at the end of the sixth month. You plan to withdraw $116 in the sixth month and increase your withdrawals by $10 over the previous month's withdrawal. How much should you deposit now in a bank account that pays 12% per year compounded monthly? Enter the answer with two decimal places. Do not enter the dollar (S) symbol. eg. 1234.56 Hint: Determine m and k and...
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