Unformatted text preview: $172,427.68 that he will have total at age 70 b) If your funds continue to earn 9% annually and you withdraw $17,000 annually, how long will it take to exhaust your funds? Total PV of money withdrawn in the future. Present value at age 70 answer in (a) $172,427.68 = ($17, 000 / 0.09) (1 1 / 1.09 n ) = N = 28 years c) If your funds continue to earn 9% annually and your life expectancy is 18 years, what is the maximum you may withdraw each year? A = money withdrawn each year $172,427.68 = (A / 0.09) (1 1 / 1.09 18 ) A = $19,693.36 is the max that can be withdraw each year...
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This note was uploaded on 04/01/2012 for the course FINC 354 taught by Professor Gibbons-cobb during the Spring '12 term at Columbia College.
- Spring '12