You want to be able to withdraw $35,000 each yearfor 25 years. Your account earns 5% interest.a) How much do you need in your account at thebeginning?LAb) How much total money will you pull out of theaccount?LAc) How much of that money is interest?tA

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You want to be able to withdraw $35,000 each year for 25 years. Your account earns 5% interest. a) How much do you need in your account at the beginning? tA $ b) How much total money will you pull out of the account? tA c) How much of that money is interest? tA

You want to be able to withdraw $35,000 each year for 25 years. Your account earns 5% interest. a) How much do you need in your account at the beginning? tA $ b) How much total money will you pull out of the account? tA c) How much of that money is interest? tA

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 34P

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Question

You want to be able to withdraw $35,000 each year
for 25 years. Your account earns 5% interest.
a) How much do you need in your account at the
beginning?
LA
b) How much total money will you pull out of the
account?
LA
c) How much of that money is interest?
tA

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