Jimmy has $212,810 accumulated in a 401K plan. The fund is earning a low, but safe, 3% per year. The withdrawals will take place at the end of each vear startina a vear from now. How soon will the fund be exhausted if Jimmv withdraws $23.000 each vear?
Jimmy has $212,810 accumulated in a 401K plan. The fund is earning a low, but safe, 3% per year. The withdrawals will take place at the end of each vear startina a vear from now. How soon will the fund be exhausted if Jimmv withdraws $23.000 each vear?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
9. Multiple Choice
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14 years.
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10 years.
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11 years.
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13 years.
Transcribed Image Text:Present and future value tables of $1 at 3% are presented below:
N
FV $1
PV $1
FVA $1
PVA $1
FVAD $1
PVAD $1
1
1.03000
0.97087
1.0000
0.97087
1.0300
1.00000
2
1.06090
0.94260
2.0300
1.91347
2.0909
1.97087
3
1.09273
0.91514
3.0909
2.82861
3.1836
2.91347
4.
1.12551
0.88849
4.1836
3.71710
4.3091
3.82861
1.15927
0.86261
5.3091
4.57971
5.4684
4.71710
6.
1.19405
0.83748
6.4684
5.41719
6.6625
5.57971
7
1.22987
0.81309
7.6625
6.23028
7.8923
6.41719
8
1.26677
0.78941
8.8923
7.01969
9.1591
7.23028
9
1.30477
0.76642
10.1591
7.78611
10.4639
8.01969
10
1.34392
0.74409
11.4639
8.53020
11.8078
8.78611
11
1.38423
0.72242
12.8078
9.25262
13.1920
9.53020
12
1.42576
0.70138
14.1920
9.95400
14.6178
10.25262
13
1.46853
0.68095
15.6178
10.63496
16.0863
10.95400
14
1.51259
0.66112
17.0863
11.29607
17.5989
11.63496
15
1.55797
0.64186
18.5989
11.93794
19.1569
12.29607
16
1.60471
0.62317
20.1569
12.56110
20.7616
12.93794
Jimmy has $212,810 accumulated in a 401K plan. The fund is earning a low, but safe, 3% per year. The withdrawals will take place at the end
of each vear startina a vear from now. How soon will the fund be exhausted if Jimmv withdraws $23.000 each vear?
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