SOLUTION: You have $100,000 to invest at 4% interest. If you wish to withdraw equal annual payments for 4 years, how much could you withdraw each year and leave $0 in the investment account?

Algebra ->  Complex Numbers Imaginary Numbers Solvers and Lesson  -> Lesson -> SOLUTION: You have $100,000 to invest at 4% interest. If you wish to withdraw equal annual payments for 4 years, how much could you withdraw each year and leave $0 in the investment account?      Log On


   

Question 1052048: You have $100,000 to invest at 4% interest. If you wish to withdraw equal annual payments for 4 years, how much could you withdraw each year and leave $0 in the investment account?
Answer = $27548
Answer by MathTherapy(10552) About Me  (Show Source):
You can put this solution on YOUR website!

You have $100,000 to invest at 4% interest. If you wish to withdraw equal annual payments for 4 years, how much could you withdraw each year and leave $0 in the investment account?
Answer = $27548
1)  Find future value (FV) on $100,000 @ 4% for 4 years

2)  Find payment on an ORDINARY annuity based on the future value amount you got in 1). This should give you: $27,549, $1 more than your answer.