Answered: If you have $30,000 in a savings…

If you have $30,000 in a savings account earning 10 percent, how large an annuity can you draw out each year if you want nothing left at the end of 8 years? PV Rate N year years Payment ? yearly PMT

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 7Q

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Concept explainers

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.

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If you have $30,000 in a savings account earning 10 percent, how large an annuity can you draw out
each year if you want nothing left at the end of 8 years?
PV
Rate
N
Payment
PMT
year
years
? yearly

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