Question 1183073
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            I will solve the problem under the assumption that Mr. Hammond withdraws a level payment 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>at the beginning of each year</U> &nbsp;to provide the money for living this year.


&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It looks like much more realistic scenario, &nbsp;and it is &nbsp;<U>usual assumption</U> &nbsp;in this class of problems.



<pre>
Use the general formula  A = {{{W*p*((1-p^(-n))/r)}}}.


In this formula,  A is the deposited value ($20,000 in this case);  

                  W  is the withdrawal annual rate W (the unknown value in this problem);  

                  the annual compounding rate is  r = 0.08;  p = 1 + r = 1 + 0.08 = 1.08;   

                  n is the number of payment periods  n= 10. 


From the formula


          W = {{{A/(((p*(1-p^(-n)))/r))}}} = {{{20000/((1.08*((1-1.08^(-10))/0.08)))}}} = 2759.80 dollars.                 <U>ANSWER</U>


Next, the TOTAL amount obtained from the account (2759.80 each year) during 10 years is  2759.80*10 = 27,598 dollars.


The difference  $27,598 - $20000 = $7.598  is the INTEREST earned by the account during 10 years.   


<U>ANSWER</U>.  The uniform level withdrawal is $2759.80 per year.
</pre>

Solved.


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See my lessons in this site associated with annuity saving plans and retirement plans 


&nbsp;&nbsp;&nbsp;&nbsp;- <A 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>

&nbsp;&nbsp;&nbsp;&nbsp;- <A 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>

&nbsp;&nbsp;&nbsp;&nbsp;- <A 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> 

&nbsp;&nbsp;&nbsp;&nbsp;- <A 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> (*)

&nbsp;&nbsp;&nbsp;&nbsp;- <A HREF=https://www.algebra.com/algebra/homework/Sequences-and-series/Solved-problems-on-Annuity-saving-plans.lesson>Miscellaneous problems on retirement plans</A> 


and especially lesson marked &nbsp;(*) &nbsp;in the list as the most relevant to the given problem.



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The difference in answers between my post and the post by tutor &nbsp;@MathTherapy is due 


to the fact that we solved the problem under &nbsp;DIFFERENT &nbsp;ASSUMPTIONS.