William North has just inherited $895,000 which he would like to use as part of his retirement nest egg. nvested the funds at a 6.28 percent annual rate compounded annually. William will reach age sixty in 10 and will retire early. Now he would like to know how much he could withdraw from the fund in equal nstallments at the end of each year from the year he reaches age 60 until he reaches age 70¹2, the year must start withdrawing funds from his individual retirement account (IRA). William assumes the funds wi continue to earn at a 6.28 percent annual rate. In other words, William would like to know the annual yea payment from an eleven-year annuity (from age 60 to the year he will be 70%), earning 6.28 percent an Round the answer to two decimal places.

William North has just inherited $895,000 which he would like to use as part of his retirement nest egg. nvested the funds at a 6.28 percent annual rate compounded annually. William will reach age sixty in 10 and will retire early. Now he would like to know how much he could withdraw from the fund in equal nstallments at the end of each year from the year he reaches age 60 until he reaches age 70¹2, the year must start withdrawing funds from his individual retirement account (IRA). William assumes the funds wi continue to earn at a 6.28 percent annual rate. In other words, William would like to know the annual yea payment from an eleven-year annuity (from age 60 to the year he will be 70%), earning 6.28 percent an Round the answer to two decimal places.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 39P

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