You decide to open an individual retirement account (IRA) at your local stockbroker that pays 10%/year for the life of the account. You deposit $2,000 today to open the account. For the next 41 years, you will deposit $2,000 per year into the account at the end of each year. There are a total of 42 $2,000 deposits. Exactly 1 year after the last deposit, you will startmaking withdrawals. Solve, a. What is the balance in the account immediately after the last deposit? b. What annual withdrawal can you make if you want the withdrawals to last 15 years? c. What annual with drawal can you make if you want the withdrawals to last 20 years? d. What annual withdrawal can you make if you want the withdrawals tolast 25 years?
You decide to open an individual retirement account (IRA) at your local stockbroker that pays 10%/year for the life of the account. You deposit $2,000 today to open the account. For the next 41 years, you will deposit $2,000 per year into the account at the end of each year. There are a total of 42 $2,000 deposits. Exactly 1 year after the last deposit, you will start
making withdrawals. Solve, a. What is the balance in the account immediately after the last deposit? b. What annual withdrawal can you make if you want the withdrawals to last 15 years? c. What annual with drawal can you make if you want the withdrawals to last 20 years? d. What annual withdrawal can you make if you want the withdrawals to
last 25 years?
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