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Find the periodic withdrawal for an annuity containing $275,000 at 6%, paid out monthly for 30...

Find the periodic withdrawal for an annuity containing $275,000 at 6%, paid out monthly for 30 years. (Assume end-of-period deposits and compounding at the same intervals as deposits). Round your answer to the nearest cent.

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Answer #1

Periodic Withdrawl = Available Amount / PVAF(r%,n)

r is int rate per month and n is no. of Months

Periodic Withdrawl = Available Amount / PVAF(r%,n)

= $ 275,000 / PVAF(0.5%,360)

= $ 275,000 / 166.7916

= $ 1648.76

Periodic withdrawl is $ 1648.76

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