Decide to open an individual retirement account

Assignment Help Business Economics

Reference no: EM13889279

You decide to open an individual retirement account (IRA) at your local bank that pays 8 percent/year compounded annually. At the end of each of the next 40 years, you will deposit $4000 into the account. Three years after your last deposit, you will begin making annual withdrawals. What annual amount will you be able to withdraw if you want the withdrawals to last....

a) For 20 years?

b) For 30 years?

c) For Forever?

Reference no: EM13889279

Questions Cloud

Understanding contemporary international political economy : Explain the liberal perspective on markets and the state with specific reference to the Keynes/Hayek debate. Why are the differences between them vital for understanding contemporary international political economy?

According to the heckscher-ohlin theory : Suppose there are only two countries, Nookshire and the Anniston. There are only two products, ale and swords. Both countries produce these products. Production of both products requires the factors capital and labor as inputs. According to the Hecks..

Contrast the effects of changes in the activity level : Contrast the effects of changes in the activity level on total fixed costs and on unit fixed costs. J. P. Alexander claims that the relevant range concept is important only for variable costs.

Function of discrete-time prototype low-pass filter : Let H/ z ) be the system function of a discrete-time prototype low-pass filter. Consider a new discrete-time low-pass filter whose system function H( z ) is obtained by replacing z in H/ z ) with ( z - a )/{1 -az ), where a is real.

Decide to open an individual retirement account : You decide to open an individual retirement account (IRA) at your local bank that pays 8 percent/year compounded annually. At the end of each of the next 40 years, you will deposit $4000 into the account. Three years after your last deposit, you will..

The traditional concept of sovereignty means that states : The traditional concept of sovereignty means that states

Optimality condition for maximization of utility function : What is the optimality condition for the maximization of the utility function U (x,y) = xy^3 and the prices (Px,Py) = (2,.0.5)? Using the utility function and optimality condition from the previous question, If M = 40 what are the utility-maximizing..

Discuss understanding of contract law : Discuss, incorporating your understanding of contract law, the following:- Whether a contract was formed. If so, when was it formed and who are the contracting parties. Bernard's legal position

Comparative advantage in manufacturing : Suppose that Home in a two-sector (i.e., agriculture and manufacturing) specific-factors model has a comparative advantage in manufacturing. If Home were to open up to trade, will Home’s workers be better off, worse off, or are we unable to say the i..

User Account

All Pages