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    Annual Withdrawal

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    A client has recently deposited $20,000 in a savings account which pays 8% interest compounded annually. He plans to withdraw a constant amount each year for 10 years, so that at the end of the 10th year the balance will be zero. How much may he withdraw at the end of each year?

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    A client has recently deposited $20,000 in a savings account which pays 8% interest compounded annually. He plans to ...

    Solution Summary

    A client has recently deposited $20,000 in a savings account which pays 8% interest compounded annually. He plans to withdraw a constant amount each year for 10 years, so that at the end of the 10th year the balance will be zero. How much may he withdraw at the end of each year?

    $2.19

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