Question

A

68
year old retiree has a pension savings of
$40,000
, a
401
k of
$63,000
, and an IRA account of
$59,000
. Before
2008
, he had
2%
more cash in the pension,
12%
more in the IRA, and
1%
more in the
401
k. He wants to take out
2%
from each account before he turns
72
, which will cost him a penalty of an extra
1%
from the current total pension amount,
2%
from the
401k
, and
6%
from the IRA. What amount will the retiree have in his IRA account if he takes that money out now? Do not include
$
in answer. Example, if answer is
$7
, put
7
.

Answer 1

The answer to your question 2456

Answer 2

54280

Explanation:

We are given a lot of information here, so the first thing we need to do is figure out what the problem is. We are asked to find the amount left in the IRA if the retiree takes money out now. To find this, all we need to know is his age, the amount in his IRA account, the percent he plans to take out, the age where no penalty is taken for withdrawals, and the penalty percentage for taking out money before age is not reached. All the other information is irrelevant. We are told that he is 68 and the age for no penalty is 72. Now we need the percent he wants to take out, which is 2% and the penalty is 6%. We are also told he has $59,000 in his IRA account. We first add the percent he plans to take out with the penalty percent, then multiply by the amount in his IRA

2+6=8%

0.08⋅59000=4720

Now, we subtract that amount from the original IRA amount

59000−4720=$54,280

So, $54,280 will be left in his IRA.