00:01
Okay, so we're going to be finding the amount of money, or the periodic withdrawal amount for this annuity account.
00:06
And we were told that this annuity account has $200 ,000 as its present value, and it's a 6 % interest, annual interest rate that is actually being compounded quarterly.
00:16
So our i value is 0 .06 divided by 4.
00:19
And our end value, since we're told w1 to do this for 15 years, is going to be 15 times the amount of times we compound, which should be 15 times 4 or 60.
00:29
And so now that we have these values, all we need to do is plug them into the equation i have written up in the top right to find the periodic withdrawal amount.
00:39
And so we're going to have our present value, which is $200 ,000, multiplied by our i value, divided by 1 minus 1 plus our i value raised to the negative 60th power.
00:59
And i'm just going to make this a little bit smaller since i ran out of room.
01:07
And from here, we can just plug this into a calculator.
01:10
So i'm going to do the denominator of this fraction part first, when i plug it into a calculator, since i think that's easiest...