Explore BrainMass

Explore BrainMass

    Payment amount

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    If you have $20,000 in an account earning 8% annually, what constant amount could you withdraw each year and have nothing remaining at the end of five years?
    a. $3,525.62
    b. $5,008.76
    c. $3,408.88
    d. $2,465.78

    © BrainMass Inc. brainmass.com June 3, 2020, 9:38 pm ad1c9bdddf

    Solution Preview

    The amount that you can withdraw annually is an annuity, the present value of ...

    Solution Summary

    The solution explains how to calculate the annuity amount such that the balance becomes nil.