Question

What is the withdrawal of $150 at the end of each year for 14 years with an interest rate of 7 percent

Answer 1

$10.5

Explanation:

Given data

P=$150

T= 1year

R= 7%

The simple interest formula will give the accurate amount at the end of each year

A=P(1+rt)

A=150(1+0.07*1)

A=150*1.07

A=$160.5

The withdrawal = 160.5-150= $10.5

Hence the withdrawal will be $10.5