Chen is 65 years old and about to retire. She has $805.000 saved to supplement his pension and Social Security and would like to withdraw it in equal annual dollar amounts so that nothing is left after 13 years. How much does she have to withdraw each year if she earns 5 percent on her money? CTO Click on the table icon to view the PVIFA table If Chen earns 5 percent on her money, the amount she will have to withdraw each year is $(Round to the nearest cent)

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Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
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Chapter14: Planning For Retirement
Section: Chapter Questions
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Chen is 65 years old and about to retire. She has $805,000 saved to supplement his pension and Social Security and would like to withdraw it in equal annual dollar amounts so that
nothing is left after 13 years. How much does she have to withdraw each year if she earns 5 percent on her money?
Click on the table icon to view the PVIFA table
If Chen earns 5 percent on her money, the amount she will have to withdraw each year is $ (Round to the nearest cent)
Transcribed Image Text:Chen is 65 years old and about to retire. She has $805,000 saved to supplement his pension and Social Security and would like to withdraw it in equal annual dollar amounts so that nothing is left after 13 years. How much does she have to withdraw each year if she earns 5 percent on her money? Click on the table icon to view the PVIFA table If Chen earns 5 percent on her money, the amount she will have to withdraw each year is $ (Round to the nearest cent)
D
89399800GWN-
10
11:
12
13
Present Value of a Series of Annual Deposits (annuity), Present-Value Interest Factor of an Annuity
2%
4%
5%
9%
0.980
0,962
0.952
0,917
1.886
1.859
1.759
2.775
2.723
2.531
3.630
3.546
4.452
4.329
5.242
5.076
6.002
5.786
6.733
6.463
7.108
7:722
8 306
14
1%
0.990
1.970
2941
3.902
4.853
5.795
6.728
7.652
8.566
9.471
10.368
11.255
12.134
13.004
1.942
2.884
3.808
4.713
5.601
3%
0.971
1.913
2.829
3.717
4.580
5.417
6.230
7.020
7.786
8.530
9.787
9253
10.575 9.954
11.348 10.635
12.106
6.472
7.325
8.162
8.983
7.435
8.111
8.760
9.385
9.986
11:296 10.563
8.863
(9.394
9.899
6%
0.943
1.833
2.673
3.465
4212
4917
5.582
6210
6.802
7:360
17.887
8384
8.853
9.295
7%
0.935
1.808
2.624
3.387
4.100
4.767
5,389
5.971
6.515
7.024
7 499
7.943
8,358
8.745
8%
0.926
1.783
2.577
3.312
3.993
4.623
5.206
5.747
6.247
6.710
7.139
7.536
7.904
8.244
3,240
3.890
4.486
5.033
5.535
5.995
6.418
6.805
7.161
7.487
7.786
10%
0.909
1.736
2.487
3.170
3.791
4.355
4.868
5.335
5.759
6.145
6.495
6.814
7.103
7.367
Transcribed Image Text:D 89399800GWN- 10 11: 12 13 Present Value of a Series of Annual Deposits (annuity), Present-Value Interest Factor of an Annuity 2% 4% 5% 9% 0.980 0,962 0.952 0,917 1.886 1.859 1.759 2.775 2.723 2.531 3.630 3.546 4.452 4.329 5.242 5.076 6.002 5.786 6.733 6.463 7.108 7:722 8 306 14 1% 0.990 1.970 2941 3.902 4.853 5.795 6.728 7.652 8.566 9.471 10.368 11.255 12.134 13.004 1.942 2.884 3.808 4.713 5.601 3% 0.971 1.913 2.829 3.717 4.580 5.417 6.230 7.020 7.786 8.530 9.787 9253 10.575 9.954 11.348 10.635 12.106 6.472 7.325 8.162 8.983 7.435 8.111 8.760 9.385 9.986 11:296 10.563 8.863 (9.394 9.899 6% 0.943 1.833 2.673 3.465 4212 4917 5.582 6210 6.802 7:360 17.887 8384 8.853 9.295 7% 0.935 1.808 2.624 3.387 4.100 4.767 5,389 5.971 6.515 7.024 7 499 7.943 8,358 8.745 8% 0.926 1.783 2.577 3.312 3.993 4.623 5.206 5.747 6.247 6.710 7.139 7.536 7.904 8.244 3,240 3.890 4.486 5.033 5.535 5.995 6.418 6.805 7.161 7.487 7.786 10% 0.909 1.736 2.487 3.170 3.791 4.355 4.868 5.335 5.759 6.145 6.495 6.814 7.103 7.367
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