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Payouts and Annuities, Part 1 : Frequency of Withdrawals for Annuities. For this part of the project, you will be looking at the difference that
Payouts and Annuities, Part : Frequency of Withdrawals for Annuities.
For this part of the project, you will be looking at the difference that the frequency of withdrawals and compounding makes on payouts from annuities.
A For all parts of this problem, money is invested in a retirement account with an APR of This is close to the average annual return rate of a traditional individual retirement account over the last decade. You want to be able to withdraw $ per year for years
How much must you have in the account to start with if compounding and withdrawals are both annual?
How much must you have in the account to start with if the compounding and withdrawals are both quarterly?
How much must you have in the account to start with if the compounding and withdrawals are both monthly?
How much must you have in the account to start with if the compounding and withdrawals are both weekly with weeks per year
B For all parts of this problem, you have a savings account that earns APR and starts with $ in the account. You want to be able to make withdrawals from the account for years. Round down to the cent for each answer.
How much can you withdraw each year if compounding is annual?
How much would you then have withdrawn in total over years?
How much can you withdraw each quarter if compounding is quarterly?
How much would you then have withdrawn in total over years?
How much can you withdraw each month if compounding is monthly?
How much would you then have withdrawn in total over years?
How much can you withdraw each week if compounding is weekly?
How much would you have withdrawn in total over years?
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