Question 1209862
Here's how to calculate the weekly withdrawal amount:

**1. Convert Annual Interest Rate to Weekly Rate:**

* Annual interest rate: 3.95% = 0.0395
* Weekly interest rate: 0.0395 / 52 weeks ≈ 0.00076

**2. Calculate the Total Number of Withdrawals:**

* Withdrawal period: 23 years
* Total withdrawals: 23 years * 52 weeks/year = 1196 weeks

**3. Use the Present Value of an Ordinary Annuity Formula:**

* This formula helps determine the regular withdrawal amount from a present lump sum, considering compound interest.
* The formula is: PMT = PV \* \[r(1 + r)^n] / \[(1 + r)^n - 1]
    * PMT = Payment (weekly withdrawal)
    * PV = Present Value ($700,000)
    * r = Weekly interest rate (0.00076)
    * n = Number of withdrawals (1196)

**4. Plug in the Values and Calculate:**

* PMT = $700,000 \* \[0.00076(1 + 0.00076)^1196] / \[(1 + 0.00076)^1196 - 1]
* PMT ≈ $891

**Answer:** Scarlett will be able to withdraw approximately $891 each week.