Slim made a single deposit of $5,000 in an account that pays 7.2% in 2012. What equal-sized annual withdrawals can Slim make from the account if the first withdrawal occurs in 2017 and the last occurs in 2022? Answer Gives: $1,393.87 Please show work The equation i have received is: Let PMT be the annual withdrawal from t = 2017 to t = 2022 Compute the PV of all above withdrawal at t = 2016 Formula: PV = PMT [N-year annuity factor] + FV [N-year discount factor] PV = (PMT/RATE)*[1 1/(1 + RATE)^N] + FV/(1 + RATE)^N As amount left over at the end of 2022 is zero, FV = 0. RATE = 7.2%, N = 6 PV = (PMT/0.072)*[1 1/(1 + 0.072)^6] Now compute PV at 2012 PV at 2012 = (PV at 2016) / 1.072^4 = (PMT/0.072)*[1 1/(1 + 0.072)^6]*(1/1.072^4) 5000 = PMT*3.587132 and PMT = $1393.87 Where, (1/0.072)*[1 1/(1 + 0.072)^6]*(1/1.072^4) = 3.587132

where does the ^6 and ^4 come from