Alicia has $350,000 saved for retirement in an account earning 3.2% interest, compounded quarterly. How much will she be able to withdraw each quarter if she wants to take withdrawals for 24 years? Round your answer to the nearest dollar.
Alicia has $350,000 saved for retirement in an account earning 3.2% interest, compounded quarterly. How much will she be able to withdraw each quarter if she wants to take withdrawals for 24 years? Round your answer to the nearest dollar.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 24P
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Alicia has $350,000 saved for retirement in an account earning 3.2% interest, compounded quarterly. How much will she be able to withdraw each quarter if she wants to take withdrawals for 24 years? Round your answer to the nearest dollar.
Expert Solution
Step 1 - Formula
Present Value of Annuity = Annuity Amount * [ {1 / ( 1 + periodic interest rate ) } + {1 / ( 1 + periodic interest rate ) }2 + ...... + {1 / ( 1 + periodic interest rate ) }number of periods ]
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