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Problem 7-06

A widow currently has a $90,000 investment that yields 6 percent annually. Can she withdraw $10,000 for the next fifteen 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 The maximum amount that can be withdrawn is $___ so she (can or can not) withdraw $10,000 for the next fifteen years.

Would your answer be different if the yield were 9 percent? Use Appendix D to answer the question. Round your answer to the nearest dollar. If the yield is 9 percent the maximum amount that can be withdrawn is $____ so ( she can or can not ) withdraw $10,000 for the next fifteen years.