You are 65 years old and about to retire. You have $100,000 saved in a retirement...
You are 65 years old and about to retire. You have $100,000 saved in a retirement account and would like to withdraw it in equal annual amounts so that nothing is left after 7 years. How much can you withdraw each year if the account earns 6% interest each year?
Homework Answers
Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate
100,000=Annuity[1-(1.06)^-7]/0.06
100,000=Annuity*5.58238144
Annuity=100,000/5.58238144
=$17913.50(Approx).
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