Solution-Determining the annual year-end payment

Determining the annual year-end payment

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Reference no: EM132796996

Now Rich knows that he will have 900,746 in his inheritance fund, when he will reach age sixty. He would like to know how much he could withdraw from the fund in equal installments at the end of each year from the year he reaches age 60 until he reaches age 70½, the year he must start withdrawing funds from his individual retirement account (IRA). Rich assumes the funds will continue to earn at a 8.88 percent annual rate. In other words, Rich would like to know the annual year-end payment from an eleven-year annuity (from age 60 to the year he will be 70½), earning 8.88 percent annually on a principal sum of $900,746.

Reference no: EM132796996

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Determining the annual year-end payment

Reference no: EM132796996

Reference no: EM132796996

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