Annual interest

L1: Annual interestThe scenerio: pre 59.5 calculator, total IRA 338000, Amount allocated 300000, reasonable interest rate 4.12, actual interest rate 6.5, method to illustrate is annuitization, everything else is default values.
My question: With these numbers, how does one arrive at $18,355 for the first years interest amount?2003-03-21 13:03, By: Ed, IP: [127.0.0.1]

L2: Annual interestTry something like…(300,000 – 16,510.39) * .065 = 18426.82 rounded to 18427 – this chart only uses the allocated IRA balance – see below..

72(t) Annual Payments

34.2 Years
Life Expectancy

$8,771.93 [$730.99/mo]
1] Minimum Distribution Method

$16,510.39 [$1,375.87/mo]
2] Amortization Method

$16,381.81 [$1,365.15/mo]
3] Annuitization Method Back to Top

Atn.Age

LifeExp.

BeginningBalance

AnnualPayment

AnnualInterest

EndingBalance

EndofYear

CosttoBust

50
34.2
$300,000
$16,510
$18,427
$301,916
1
$1,651

51
33.3
$301,916
$16,510
$18,551
$303,957
2
$3,451

52
32.3
$303,957
$16,510
$18,684
$306,131
3
$5,412

53
31.4
$306,131
$16,510
$18,825
$308,446
4
$7,550

54
30.5
$308,446
$16,510
$18,976
$310,911
5
$9,881

55
29.6
$310,911
$16,510
$19,136
$313,537
6
$12,421

56
28.7
$313,537
$16,510
$19,307
$316,334
7
$15,190

57
27.9
$316,334
$16,510
$19,489
$319,312
8
$18,208

58
27.0
$319,312
$16,510
$19,682
$322,483
9
$21,498

59
26.1
$322,483
$16,510
$19,888
$325,861
10
$25,084
2003-03-21 13:16, By: Gfw, IP: [127.0.0.1]