Question
Lincoln Benefit Life offered an annuity that pays 4.8% compounded annually. A person plans to make equal annual deposits of $12,000 into this account for
Lincoln Benefit Life offered an annuity that pays 4.8% compounded annually.
A person plans to make equal annual deposits of $12,000 into this account for 30 years and than makes 20 equal annual withdrawals reducing the balance in the account to zero.
- How much would be the annual withdrawal from the account?
- How much total interest is earned during the entire 50-year process?
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Fundamentals Of Corporate Finance
Authors: Stephen A Ross, Randolph W Westerfield, Bradford D Jordan
7th Edition
0073134295, 9780073134291
