Homework Answers
ANSWER :
Future worth of deposits = 5500 * (F/A, 6%, 35) = 5500 * 135.904206 = 747473.13
Let A be the annual withdrawal amount, then
Present worth of withdrawal = A * (P/A, 6%, 20) = A * 11.469921
As per condition
A * 11.469921 = 747473.13
A = 747473.13 / 11.469921
A = 65168.11 (Nearest Cent)
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