Question

When she retires, suppose your aunt deposits the total amount of 431,921.01 in a new account...

When she retires, suppose your aunt deposits the total amount of 431,921.01 in a new account earning 5.00 percent annually. If she expects to live another 20 years once she retires, how much can she withdraw each month to end up with a zero balance in the account upon her death? Assume she receives the withdrawal at the end of each month

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Your aunt is 65 years old and has just retired with $750,000 in her IRA account...
Your aunt is 65 years old and has just retired with $750,000 in her IRA account She expects the investments in this account to earn a return of 8.5% each year. She also expects to live for 30 years in retirement. She plans to withdraw an equal amount from this account each year starting now and also plans to leave $50,000 to you in 30 years. How much can she withdraw per year from the account?
1a. Your uncle dies and your 70-year-old aunt receives $150,000 life insurance proceeds. She needs monthly...
1a. Your uncle dies and your 70-year-old aunt receives $150,000 life insurance proceeds. She needs monthly income and expects to live for approximately 18 years. If she invests the insurance money, earning 7% compounded monthly, how much can she withdraw at the end of each month? a. $8,802.75 b. $10,500.00 c. $14,911.89 d. $1,223.25 1b. Determine your monthly payment on a 6-year $12,500 car loan at 5.75% interest. a. $13.07 b. $214.65 c. $152.15 d. $205.69
Sam retires today at the age of 65 and invests his life savings into an account...
Sam retires today at the age of 65 and invests his life savings into an account that is guaranteed to earn 4.12% per year. Sam expects to live to the age of 87, withdraw $0.112mln from the account at the end of each year, and leave his heirs $1.818mln (this amount will be the account balance at the time of his death). How much is Sam putting in the account today, in $ million? Round to the nearest $0.001 million....
Nicole wants to have 2 million dollars in her account when she retires in 40 years....
Nicole wants to have 2 million dollars in her account when she retires in 40 years. Nicole's retirement account is currently earning 8.5% interest compounded monthly. How much does she need to deposit each month to reach her retirement goal?
Upon retirement, Juanita moves her whole retirement account into a new account earning 4.7% annually. If...
Upon retirement, Juanita moves her whole retirement account into a new account earning 4.7% annually. If Juanita wishes to withdraw from her account quarterly and she plans on her retirement account lasting for 20 years, what amount can she withdraw each quarter?
When her aunt​ died, Sue inherited an annuity paying ​$5,600 every six months into a savings...
When her aunt​ died, Sue inherited an annuity paying ​$5,600 every six months into a savings account for five years. The terms of the will state that he cannot withdraw any money for the first five ​years, and then he can withdraw equal amounts at the end of each six months for eleven years. If interest is 3.32​% compounded semi dash annually​, what will be the size of each​ withdrawal?
Today is Joan's 30th birthday. Assume that she deposits $3,400 today and $3,400 on each of...
Today is Joan's 30th birthday. Assume that she deposits $3,400 today and $3,400 on each of her birthdays until she turns 60 (when she makes the last deposit) into an account earning 6% p.a. She plans to withdraw equal amounts each year from the time she turns 65 until she is 80. The maximum amount that each withdrawal can be is $______.
Grandma decides to put 1000 dollars every month into an account for you. She makes 25...
Grandma decides to put 1000 dollars every month into an account for you. She makes 25 monthly deposits, the last coming September 1, 2019 - the day you start college. She wants you to be able to withdraw money from this account at the beginning of each month, with the first withdrawal coming September 1, 2019 and the last coming June 1, 2024, (when you'll graduate). (Note: that makes 58 withdrawals total.) How much will you be able to withdraw...
Sofia just graduated from college and she is starting her new job today. Her new employer...
Sofia just graduated from college and she is starting her new job today. Her new employer gave her a $15,000 signing bonus that she will invest today. She plans to retire 50 years from today (i.e., at the end of year 50). Once she retires, she would like to be able to withdraw from her retirement account $180,000 at the end of each year, starting the year after she retires (i.e., year 51). She expects that her retirement will last...
Sofia just graduated from college and she is starting her new job today. Her new employer...
Sofia just graduated from college and she is starting her new job today. Her new employer gave her a $15,000 signing bonus that she will invest today. She plans to retire 50 years from today (i.e., at the end of year 50). Once she retires, she would like to be able to withdraw from her retirement account $180,000 at the end of each year, starting the year after she retires (i.e., year 51). She expects that her retirement will last...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT