SOLUTION: Beginning at age 35, Ms. Trinh invests $2000 each year into an IRA account until she retires. When she retires she plans to withdraw equal amounts each year that will deplete the a

Question 1131811: Beginning at age 35, Ms. Trinh invests $2000 each year into an IRA account until she retires. When she retires she plans to withdraw equal amounts each year that will deplete the account when she is 80. Find the annual amounts she will receive for each of the following retirement ages. Assume the account pays 6% compounded annually. (Round your final answers to two decimal places.)
(a) Retires at age 60.
$ =

(b) Retires at age 65.
$ =

(c) Retires at age 70.
$=
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
Future value=Payment [(1+i)^n]-1 divided by i
FV=2000(1+.06)^25-1/.06
=$109729.02
at 65, n=30
FV=2000(1.06)^30/0.06
=$158116.37
at 70, n=35
FV=$222869.56
RELATED QUESTIONS
Starting at age 25, Tracy invests $1500 at the end of each year in an IRA with an APR of... (answered by stanbon)

Here is my problem: At age 27, Lauren Johnson deposited $1,000 into an IRA, in which it... (answered by stanbon)

Sophie is 30 years old. However, she is already planning for retirement. She plans on... (answered by ikleyn)

Cecelia Thomas is a sales executive at a Baltimore firm. She is 25 years old and plans to (answered by ikleyn)

She is 25 years old and plans to invest $4,600 every year in an IRA account, beginning at (answered by Boreal)

Jeremy is looking at options for retirement investing. He finds an IRA that will pay 6%... (answered by stanbon)

Cecelia Thomas is a sales executive at a Baltimore firm. She is 25 years old and plans to (answered by Boreal,MathTherapy)

At age 30 to save for retirement Rebecca decides to deposit $75 at the end of each month... (answered by stanbon)

Joan wants to start an IRA that will have in it when she retires in How much should she (answered by rfer)