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Question - You have an IRA worth $250,000 and want to start to make equal, annual withdrawals (i.e., distributions from the account) for 25 years. You anticipate earning 4 percent on the funds.
Required -
-How much can you withdraw each year?
-Since you are earning 4 percent on your investments, how much of the withdrawal consumes your investments?
-How much will be in the account at the end of the first year?
-How much do you earn on your investments in the account during the second year?
-How much will be in the account at the end of the second year?
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