Ignore income taxes in this problem…

Question:

Ignore income taxes in this problem. You have deposited $7,620 in a special account that has a guaranteed interest rate of 19% per year. If you are willing to completely exhaust the account, what is the maximum amount that you could withdraw at the end of each of the next 7 years? Select the amount below that is closest to your answer. $1,295
$2,056
$2,219
$1,089

show work please annuity rate is 3.706 if needed

Answer:

Calculator Working
N = 7; I/Y = 19%; PV = -$7,620; PMT = $?; FV = $0

CPT PMT
PMT = $2056.29 (2DP)

Amount is $2,056

Leave a Comment

Your email address will not be published. Required fields are marked *