How much of the withdrawal consumes investments

Assignment Help Financial Accounting
Reference no: EM132949710

You have an IRA worth $200,000 and want to start to make equal, annual withdrawals (i.e., distributions from the account) for 15 years. You anticipate earning 4 percent on the funds. (To facilitate the calculation, assume an ordinary annuity.)

Problem a. How much can you withdraw each year?

Problem b. Since you are earning 4 percent on your investments, how much of the withdrawal consumes your investments?

Problem c. How much will be in the account at the end of the first year?

Problem d. How much do you earn on your investments in the account during the second year?

Problem e. How much will be in the account at the end of the second year?

Reference no: EM132949710

Questions Cloud

What are the possible causes of conflict : Question 1: What are the possible causes of conflict? Question 2: How do people cope with conflicts? Explain each strategy
What the balance of beth capital account after the sale is : What the balance of Beth's Capital account after the sale is? Partners Ana, Beth, and Cathy have capital account balances of $101000 each
What is the total liability on retirement fund on amm inc : What is the total liability on the retirement fund on AMM Inc. as of December 31, 2023? Annual contribution to a fund managed by trustee, 400,000 every year end
Which of the financial assets at fair value oci : Which of the Financial Assets at Fair Value OCI? Reclassification adjustments are amounts reclassified to profit or loss in the current period
How much of the withdrawal consumes investments : How much can you withdraw each year? Since you are earning 4 percent on your investments, how much of the withdrawal consumes your investments?
Evaluation strategies for the paypal organization : What are the best ways to utilize the evaluation strategies for the Paypal organization. When it focuses on using its change plan and determine the level of suc
Conducting an honest assessment : What are some of the gaps that you will need to work on to build a bridge from where you are now to where you want to be at graduation?
Identify the characteristics of an environment : You have worked hard, trained for the race for months, bought the special running shoes, and eaten all the right things. You did your stretches before the race
Discuss the underlying reasons : Discuss the underlying reasons that led Tongaat Hulett to a situation that required a turnaround strategy

Reviews

Write a Review

Financial Accounting Questions & Answers

  Discuss introduction to international trade

a) Discuss Introduction to international trade and how the internet facilitates international trade.

  Should the company purchase the new machine and why

Labour costs will be $12,000 in the first year of operations are expected to rise by 8 percent each year. Should the company purchase the new machine?

  Should the methods be reevaluated

Can you think of any risk that isn't accounted for in this type of analysis? Do we really gain much analyzing a stock or portfolio that deeply?

  Compute the expected balance in accounts receivable

Prepare a schedule of cash collections for May through July and compute the expected balance in Accounts Receivable as of July 31.

  The balance in the prepaid insurance account

The balance in the prepaid insurance account, before adjustment at the end of the year, is $18,565. The year end is March 31. Journalize the March 31 adjusting entry required under each of the following alternatives for determining the amount of the ..

  Contingent liability is an accrual for possible losses

The contingent liability is an accrual for possible losses on a $1,000,000 lawsuit filed against Brite. Brite's legal counsel expects the suit to be settled in

  How much revenue should pharoah recognize during may

Pharoah Company purchased 20 calculators for $20 each, one-half on May 14, How much revenue should Pharoah recognize during May?

  Contribution pension plan and a defined benefit pension plan

Explain the fundamental differences between a defined contribution pension plan and a defined benefit pension plan. This relates to Intermediate Accounting 2, Pension Plans,

  How much is the revenue recognition

Assuming that Lions used the percentage-of-completion method, how much ($ in millions) is the revenue recognition in 2010

  What contract rate would outsourcing pay off for seven seas

Seven Seas Company manufactures 100 luxury yachts per month. Included in each yacht is a compact media center. Seven Seas manufactures the media center in-house, but is considering the possibility of outsourcing that function, in order to close down ..

  Determine what the total sales in dollars would be

If the team sold every ticket to every game, the total sales in dollars would be? Fixed costs, including player salaries and operating expenses, total $1.2.

  Straight-line interest method to amortize bond premium

Mitro Corporation issued $651,000, 7%, 10-year bonds on January 1, 2015, for $606,764. This price resulted in an effective-interest rate of 8.0% on the bonds. Interest is payable semi annually on July 1 and January 1. Mitro uses the straight-line int..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd