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7. You decide to put $10,000 dollars into an account for 10 years at 6% annual interest. After 10 years you want to start withdrawing money as a yearly annuity at 6% annual interest. How much will you g

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Answer:

the question is incomplete, so I looked for a similar question:

How much will you get if you want the annuity to last for 5 years?

after 10 years you will have $10,000 x (1 + 10%)⁶ = $17,715.61

we can use the present value of an ordinary annuity formula in order to determine the annual payment:

present value = annual payment x annuity factor

annual payment = present value / annuity factor

  • present value = $17,715.61
  • PV annuity factor, 6%, 5 periods = 4.2124

annual payment = $17,715.61 / 4.2124 = $4,202.59

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