Question
You have been saving and investing in two separate retirement accounts over the past 15 years. You currently have accumulated $316,000 in one account and
You have been saving and investing in two separate retirement accounts over the past 15 years. You currently have accumulated $316,000 in one account and $594,000 in the other account. Today, you will combine the two accounts into one, which will earn 7.25% per year, now and in the future. Beginning one year from now (end of year 1) and continuing for 25 years, you plan to withdraw an equal annual amount from this new account each amount being withdrawn at the end of each year for 25 years. How much will you be able to withdraw at the end of each year (answer rounded to nearest whole dollar)?
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