HW-1713 Investment questions

           (1)   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   reg- ular 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.    

          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?