you are 60 years old currently you have 10 000 invested 255713

You are 60 years old. Currently, you have $10,000 invested in an IRA and have just received a lump-sum distribution of $50,000 from a pension plan, which you roll over into an IRA. You continue to make $2,000 annual payments to the regular IRA and expect to earn 9 percent on these funds until you start withdrawing the money at age 70 (i.e., after ten years). The IRA rollover will earn 9 percent for the same duration.

a) How much will you have when you start to make withdrawals at age 70?

b) If your funds continue to earn 9 percent annually and you withdraw $17,000 annually, how long will it take to exhaust your funds?

c) If your funds continue to earn 9 percent annually and your life expectancy is 18 years, what is the maximum you may withdraw each year?

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