Solution:
Amount that Ana got from IRA in last 15 years per month= $ 230.32
Total money saved = $ 230.32 × 15 × 12
= $ 230.32 × 180
= $ 41457.60
Compound Interest on the Principal of $ 41457.60 at the rate of 2.3 %monthly
Amount = Principal [tex][1 + \frac{R}{100}]^1[/tex]
= [tex]41457.60[1+\frac{2.3}{100}]^1 \\\\ = 42411.1248[/tex]$
Money received as a pension= $ 1562.32
She wants to divide $ 42411.1248 as a primary source of income for the next 10 years.
Amount received from IRA as an income if she divides whole income of $ 42411.1248 into 120 parts (10 years= 12 ×10= 120 months) = [tex]\frac{42411.1248}{120}=353.426[/tex]$
Total money received as an income per month by Ana= $ 353.426 + $ 1562.32= $ 1915.746
=$ 1915.75(Approx)
