give full explantion **Retirement Withdrawal Plan Analysis***Scenario:*You currently have a total of $2,520,000 in your retirement account. You plan to make a uniform series of annual withdrawals, starting one year from today, over the next 15 years. The goal is to determine the maximum amount you can withdraw annually while ensuring that $175,000 remains in the account immediately after the fifteenth withdrawal. The account accrues interest at an annual rate of 8%.*Key Parameters:*- **Initial Account Balance:** $2,520,000- **Final Balance Requirement:** $175,000- **Annual Interest Rate:** 8%- **Withdrawal Period:** 15 years*Objective:*Calculate the maximum annual withdrawal amount that meets the specified conditions.

You have a total of $2,520,000 in your retirement account right now. You plan on making a uniform series of annual withdrawals (beginning one year from today) for the next 15 years. What is the maximum value of the annual withdrawal if you wish to have $175,000 left in the account immediately after the fifteenth withdrawal? Money in your retirement account earns 8% interest each year.

You have a total of $2,520,000 in your retirement account right now. You plan on making a uniform series of annual withdrawals (beginning one year from today) for the next 15 years. What is the maximum value of the annual withdrawal if you wish to have $175,000 left in the account immediately after the fifteenth withdrawal? Money in your retirement account earns 8% interest each year.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

If you deposit $10000 into a fund paying interest 6%. How much you get after one year.
14. Determine the periodic payment for the following deferred annuity. The annuity is an ordinary annuity following the period of deferral. Deferral period 27 months Payment Interest interval rate (%) (months) 6.4 Compounding Term frequency (years) Quarterly 20 Present value (S) 50,000.00
Someone decides to purchase a vehicle. They will finance the entire purchase and can afford to pay $400 per month. The loan is for 36 months and there is a 7% annual interest rate. What is the maximum purchase price they can afford?
Show Solution. Topic: Simple Differed Annuity 2. A motorcycle costs P75,000. A buyer will pay P25,000 now and pay the balance in 5 annual payments. The first payment is due in 3 years. If money is worth 10% effective, how much is the annual payment?
A 3 year straight note was executed by a buyer. The interest paid over the term was $3,431.70. The annual interest rate was 9.3%. What was the loan amount? Select one: a. $9,150 b. $36,900 c. $31,915 d. $12,300 Finish attempt...
Tim invested in a 3-year bond paying 4.7% simple interest. Upon maturity the bond was worth $2700. How much money did Tom invest?
Protection costs $338 and returns $507 after 6 years. What is the interest rate?
Jim Duggan made an investment of $10,000 in a savings account 10 years ago. This account paid interest of 5 1/2% for the first 4 years and 6 1/2% interest for the remaining 6 years. The interest charges were compounded quarterly. How much is this investment worth now?
A bond's face value is the amount the issuer provides to the bondholder, once maturity is reached. A bond's face value is $81，843 and it mature after 8 years. If the interest rate is 9.82%, how much would you pay (at most) to purchase this bond?
Ron invest $2000 in a savings account that gives him a simple interest rate of 6% for 3 years. A. how much interest the investment earns and B. how much money he has after 3 years?
Richard Miyashiro purchased a condominium and obtained a 20- year loan of $192, 000 at an annual interest rate of 8.20%. (Round your answers to the nearest cent.)(a) What is the mortgage payment? (b) What is the total of the payments over the life of the loan? (c) Find the amount of interest paid on the mortgage loan over the 20 years.
Jill bought a $680 rocking chair. The terms of her revolving charge are 1.5% on the unpaid balance from the previous month. If she pays $100 per month, complete a schedule for the first 3 months. Be sure to use the U.S. Rule. (Round your final answers to the nearest cent.) Monthly payment number Outstanding 1.5% interest Amount of Reduction in Outstanding balance due balance due payment monthly payment balance due 2 3 Mc Graw Hill A Prev 2 of 15 Next > MacBook Air 44 DII V10 18 F7 F6 F10 F4 FG 19 F3 27 F2 * & @ #3 %24 4. 6. 1 T Y Q W J K F G S C V com < CO A.