# Annuity

Not what you're looking for?

A husband and wife contribute $4,000 per year to an IRA paying 10%, compounded annually, for twenty years. What is the value of their IRA? How much can they withdraw each year for 25 years at 10% compounded annually?

##### Purchase this Solution

##### Solution Summary

Calculates the amount of annual withdrawal froma fund.

##### Solution Preview

What is the value of their IRA?

Equal contribution = $4,000

No of years=n= 20

Rate of interest=r= 10.00%

To calculate the value of the IRA amount we need to calculate / read from tables the values of

FVIFA= Future Value Interest Factor for an Annuity

The formula for FVIFA is

FVIFA( n, r%)= =[(1+r%)^n -1]/r%

FVIFA (20 periods, 10.% rate)= 57.2750

Amount at the end of 20 years= Annual amount deposited ...

##### Purchase this Solution

##### Free BrainMass Quizzes

##### Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

##### Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

##### Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

##### Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

##### Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations