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Problem $7-06$

A widow currently has a $$86,000$ investment that yields $5$ percent annually. Can she withdraw $$12,000$ for the next ten years? Use Appendix D to answer the question. Round your answer to the nearest dollar.

The maximum amount that can be withdrawn is $ so she withdraw $$12,000$ for the next ten years.

Would your answer be different if the yield were $7$ percent? Use Appendix D to answer the question. Round your answer to the nearest dollar.

If the yield is $7$ percent the maximum amount that can be withdrawn is $ so she withdraw $$12,000$ for the next ten years.