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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
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The solution explains how to calculate the annuity amount such that the balance becomes nil.
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The amount that you can withdraw annually is an annuity, the present value of ...
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