Question
1.) Your client has accumulated $1,236 on his saving account . He would like to withdraw $181 a year at the end of the year.
1.) Your client has accumulated $1,236 on his saving account . He would like to withdraw $181 a year at the end of the year. Leaving aside issues of inflation, his account pays after-tax interest rate of 6 percent per year compounded annually. How long this annuity will last?
2.) Jessica has accumulated $1,218,000 as his retirement funds . She would like to withdraw $193,000 a year at the end of the year. Leaving aside issues of inflation, her account pays after-tax interest rate of 8 percent per year compounded annually. How long this annuity will last?
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