A personal account earmarked as a retirement supplement contains $292,400. Suppose $250,000 is used to establish an annuity that earns 7%, compounded quarterly, and pays $5500 at the end of each quarter. How long will it be until the account balance is $0?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 3CE

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Question

A personal account earmarked as a retirement supplement contains $292,400. Suppose $250,000 is used to establish an annuity that earns 7%, compounded quarterly, and pays $5500 at the end of each quarter. How long will it be until the account balance is $0? (Round your answer UP to the nearest quarter.) Please Introduction and explanation step by step without plagiarism and I humble request plz use math tools no handwriting

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