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
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-> 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
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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.
$ =
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
