Present and future values 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 5 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 Debbie has $368,882 accumulated in a 401K plan. The fund is earning a low, but safe, 3% per year. The withdrawals will take place annually starting today. How soon will the fund be exhausted if Debbie withdraws $30,000 each year?
Present and future values 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 5 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 Debbie has $368,882 accumulated in a 401K plan. The fund is earning a low, but safe, 3% per year. The withdrawals will take place annually starting today. How soon will the fund be exhausted if Debbie withdraws $30,000 each year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Present and future values 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 |
| 5 | 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 |
Debbie has $368,882 accumulated in a 401K plan. The fund is earning a low, but safe, 3% per year. The withdrawals will take place annually starting today. How soon will the fund be exhausted if Debbie withdraws $30,000 each year?
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