document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1209862>Question 1209862</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Scarlett has $700,000 saved for retirement in an account earning 3.95% interest, compounded weekly. How much will she be able to withdraw each week if she wants to take withdrawals for 23 years? Round your answer to the nearest dollar.<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 #850903 by </B><A HREF=/tutors/aboutme.mpl?userid=CPhill><B>CPhill(1959)</B></A><img src=\"/images/stars/stars-12.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=CPhill><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=CPhill><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=850903\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Here's how to calculate the weekly withdrawal amount:\r<BR>\n" );
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document.write( "**1. Convert Annual Interest Rate to Weekly Rate:**\r<BR>\n" );
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document.write( "* Annual interest rate: 3.95% = 0.0395<BR>\n" );
document.write( "* Weekly interest rate: 0.0395 / 52 weeks ≈ 0.00076\r<BR>\n" );
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document.write( "**2. Calculate the Total Number of Withdrawals:**\r<BR>\n" );
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document.write( "* Withdrawal period: 23 years<BR>\n" );
document.write( "* Total withdrawals: 23 years * 52 weeks/year = 1196 weeks\r<BR>\n" );
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document.write( "**3. Use the Present Value of an Ordinary Annuity Formula:**\r<BR>\n" );
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document.write( "* This formula helps determine the regular withdrawal amount from a present lump sum, considering compound interest.<BR>\n" );
document.write( "* The formula is: PMT = PV \* \[r(1 + r)^n] / \[(1 + r)^n - 1]<BR>\n" );
document.write( "    * PMT = Payment (weekly withdrawal)<BR>\n" );
document.write( "    * PV = Present Value ($700,000)<BR>\n" );
document.write( "    * r = Weekly interest rate (0.00076)<BR>\n" );
document.write( "    * n = Number of withdrawals (1196)\r<BR>\n" );
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document.write( "**4. Plug in the Values and Calculate:**\r<BR>\n" );
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document.write( "* PMT = $700,000 \* \[0.00076(1 + 0.00076)^1196] / \[(1 + 0.00076)^1196 - 1]<BR>\n" );
document.write( "* PMT ≈ $891\r<BR>\n" );
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document.write( "**Answer:** Scarlett will be able to withdraw approximately $891 each week.<BR>\n" );
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