document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1194741>Question 1194741</A>: <I><SPAN STYLE=\"word-break: break-all;\"> You want to be able to withdraw $45,000 each year for 20 years. Your account earns 10% interest.\r<BR>\n" );
document.write( "\n" );
document.write( "a) How much do you need in your account at the beginning?\r<BR>\n" );
document.write( "\n" );
document.write( "$\r<BR>\n" );
document.write( "\n" );
document.write( "b) How much total money will you pull out of the account?\r<BR>\n" );
document.write( "\n" );
document.write( "$\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "c) How much of that money is interest?\r<BR>\n" );
document.write( "\n" );
document.write( "$<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #827332 by </B><A HREF=/tutors/aboutme.mpl?userid=Boreal><B>Boreal(15235)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Boreal><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=Boreal><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=827332\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Total=45000(1-(1+0.10/1)^(-20))/0.10<BR>\n" );
document.write( "=45000*0.8514/0.1<BR>\n" );
document.write( "=$383,130 needed at the outset<BR>\n" );
document.write( "In 20 years, the total payments out have been $900,000, so the interest is $900,000-$383,130 that was put in the annuity, for the interest to be $516,870. </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );