document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1163416>Question 1163416</A>: <I><SPAN STYLE=\"word-break: break-all;\"> You want to be able to withdraw $35,000 each year for 20 years. Your account earns 5% interest.\r<BR>\n" );
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document.write( "a) How much do you need in your account at the beginning?\r<BR>\n" );
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document.write( "b) How much total money will you pull out of the account?\r<BR>\n" );
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document.write( "c) How much of that money is interest?\r<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #787501 by </B><A HREF=/tutors/aboutme.mpl?userid=ikleyn><B>ikleyn(53751)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=ikleyn><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=ikleyn><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=787501\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> .<BR>\n" );
document.write( "<PRE STYLE=\"white-space: pre-wrap; white-space: -moz-pre-wrap; white-space: -pre-wrap; white-space: -o-pre-wrap; word-wrap: break-word;\">\r\n" );
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document.write( "Use the general formula  X = <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=W%2Ap%2A%28%281-p%5E%28-n%29%29%2Fr%29 ALIGN=MIDDLE  ALT=\"W%2Ap%2A%28%281-p%5E%28-n%29%29%2Fr%29\"   DISABLED_style= \"max-width:90%; height:auto;\" >.\r\n" );
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document.write( "In this case  the withdrawal annual rate is  W = $35000,  the annual compounding rate \r\n" );
document.write( "is  r = 0.05,  p = 1 + 0.05 = 1.05, the number of withdrawal periods  is n = 20. So\r\n" );
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document.write( "          X = <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=35000%2A1.05%2A%28%281-1.05%5E%28-20%29%29%2F0.05%29 ALIGN=MIDDLE  ALT=\"35000%2A1.05%2A%28%281-1.05%5E%28-20%29%29%2F0.05%29\"   DISABLED_style= \"max-width:90%; height:auto;\" > = 457,986.24 dollars. \r\n" );
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document.write( "It is how much your account should  have at the beginning.    \r\n" );
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document.write( "You will pull out  35000*20 = 700,000 dollars.\r\n" );
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document.write( "The difference  700,000 - 457,986.24 = 700,000 - 457,986.24 = 242,013.76 is the interest.\r\n" );
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document.write( "Solved. &nbsp;&nbsp;&nbsp;&nbsp;All questions are answered.\r<BR>\n" );
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document.write( "See my lessons in this site associated with annuity saving plans and retirement plans \r<BR>\n" );
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document.write( "&nbsp;&nbsp;&nbsp;&nbsp;- <A  rel=nofollow HREF=http://www.algebra.com/algebra/homework/Sequences-and-series/Ordinary-Annuity-saving-plans-and-geometric-progressions.lesson>Ordinary Annuity saving plans and geometric progressions</A>\r<BR>\n" );
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document.write( "&nbsp;&nbsp;&nbsp;&nbsp;- <A  rel=nofollow HREF=http://www.algebra.com/algebra/homework/Sequences-and-series/Annuity-due-saving-plans-and-geometric-progressions.lesson>Annuity Due saving plans and geometric progressions</A>\r<BR>\n" );
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document.write( "&nbsp;&nbsp;&nbsp;&nbsp;- <A  rel=nofollow HREF=https://www.algebra.com/algebra/homework/Sequences-and-series/Solved-problem-on-Ordinary-Annuity-saving-plans.lesson>Solved problems on Ordinary Annuity saving plans</A> \r<BR>\n" );
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document.write( "&nbsp;&nbsp;&nbsp;&nbsp;- <A  rel=nofollow HREF=https://www.algebra.com/algebra/homework/Sequences-and-series/Withdrawing-a-certain-amount-of-money-periodically-from-a-compounded-saving-account.lesson>Withdrawing a certain amount of money periodically from a compounded saving account</A> (*)\r<BR>\n" );
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document.write( "&nbsp;&nbsp;&nbsp;&nbsp;- <A  rel=nofollow HREF=https://www.algebra.com/algebra/homework/Sequences-and-series/Solved-problems-on-Annuity-saving-plans.lesson>Miscellaneous problems on retirement plans</A> \r<BR>\n" );
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document.write( "and especially lesson marked &nbsp;(*) &nbsp;in the list as the most relevant to the given problem.\r<BR>\n" );
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