Ms. Thompson wins a lottery worth $200 000. If she invests it in an account that earns 2.4% compounded monthly, how much will she be able to withdraw every month over the next 25 years? (until the money is gone) Show all of your work!
Added by Douglas L.
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We can do this by dividing the annual interest rate by 12 (since there are 12 months in a year). Monthly interest rate = 2.4% / 12 = 0.024 Show more…
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