
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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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.
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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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