Answer:
annual withdrawal = $15096.04
Explanation:
given data
present value = $50,000
annual rate = 8%
time = 4 year
to find out
How much can you withdraw each year
solution
we find here annual withdrawal amount that is express as
annual withdrawal = [tex]\frac{present\ value}{\frac{1-(1+r)^{-t}}{r}}[/tex] ................1
here r is rate and t is time
so put here value we get
annual withdrawal = [tex]\frac{50000}{\frac{1-(1+0.08)^{-4}}{0.08}}[/tex]
annual withdrawal = [tex]\frac{50000}{3.31212}[/tex]
annual withdrawal = $15096.04
