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    Annual withdrawals

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    Your father now has $1,000,000 invested in an account that pays 9.00%. He expects inflation to average 3%, and he wants to make annual constant dollar (real) beginning-of-year withdrawals over each of the next 20 years and end up with a zero balance after the 20th year.

    How large will his initial withdrawal (and thus constant dollar (real) withdrawals) be?

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    https://brainmass.com/business/accounting/your-father-invested-account-pays-331106

    Solution Summary

    The solution explains how to calculate the amount of annual withdrawals given the initial investment

    $2.19

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