Question 20 You want to be able to withdraw $45,000 each year for 25 years. Your account earns 7% interest. a) How much do you need in your account at the beginning? $ b) How much total money will you pull out of the account? $ c) How much of that money is interest? $ Question Help: ? Message instructor
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The formula for the present value of an annuity is: $$PV = PMT \times \frac{1 - (1 + r)^{-n}}{r}$$ where: * PV is the present value * PMT is the payment amount * r is the interest rate * n is the number of periods Show more…
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