SOLUTION: You want to be able to withdraw $20,000 each year for 25 years. Your account earns 10% interest. a) How much do you need in your account at the beginning? $22,000 b) How

Algebra ->  Finance -> SOLUTION: You want to be able to withdraw $20,000 each year for 25 years. Your account earns 10% interest. a) How much do you need in your account at the beginning? $22,000 b) How      Log On


   

Question 1122076: You want to be able to withdraw $20,000 each year for 25 years. Your account earns 10% interest.
a) How much do you need in your account at the beginning?
$22,000

b) How much total money will you pull out of the account?
$550,000

c) How much of that money is interest?
$50,000
Answer by ariana3212(1) About Me  (Show Source):
You can put this solution on YOUR website!
You want to be able to withdraw $20,000 each year for 25 years. Your account earns 10% interest.
a) How much do you need in your account at the beginning?
$22,000

b) How much total money will you pull out of the account?
$550,000

c) How much of that money is interest?
$50,000