A man establishes an annuity for retirement by depositing $50,000 into an account that pays 7.2% compounded

Question:

A man establishes an for retirement by depositing $50,000 into an account that pays 7.2% compounded monthly. Equal monthly withdrawals will be made each month for 5 years, at which time the account will have a zero balance. Each year taxes must be paid on the interest earned by the account during that year. How much interest was earned during the first year? [The amount in the account at the end of the first year is the present value of a 4-year Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...