Answered: If you have $20,000 in an account…

If you have $20,000 in an account earning 8 percent annually, what constant amount could you withdraw each year and have nothing remaining at the end of 5 years?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 1P

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Question

2) see picture

If you have $20,000 in an account earning 8 percent annually, what constant amount
could you withdraw each year and have nothing remaining at the end of 5 years?
O A) $3,525.62
B) $5,009.12
O C) $3,408.88
O D) $2,465.78

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