SOLUTION: Emily Fields makes annual deposits of $1100 to an an IRA earning 15% compounded annually for 14 years. What is The value of her IRA at the end of 14 years and How much can Emily w
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Question 1188462: Emily Fields makes annual deposits of $1100 to an an IRA earning 15% compounded annually for 14 years. What is The value of her IRA at the end of 14 years and How much can Emily withdraw each year for the next 21 years at 15% compounded annually? Answer by Theo(13342) (Show Source):
the results of the use of that calculator are shown below:
inputs are everything except fv.
output is fv = 44,558.18.
that's how much is available to withdraw from for the next 21 years.
inputs are everything except pmt.
output is pmt = 7058.29.
that's how much can be withdrawn at the end of each year for the next 21 years.
i used excel to show you the year by year remaining balance in the account.
the results of the use of excel are shown bwlow:
during the investment period, the procedure is that the remaining balance in the account at the end of any year is equal to the remaining balance in the account at the end of the previous year * 1.15 plus 1100.
during the withdrawal period, the procedure is that the remaining balance in the account at the end of any year is equal to the remaining balance in the account at the end of the previous year * 1.15 minus 7058.29.
