You want to be able to withdraw $50,000 each year for 25 years. Your account earns 9% interest. a) How much do you need in your account at the beginning? $ b) How much total money will you pull out of the account? c) How much of that money is interest?

You want to be able to withdraw $50,000 each year for 25 years. Your account earns 9% interest. a) How much do you need in your account at the beginning? $ b) How much total money will you pull out of the account? c) How much of that money is interest?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PB: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

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You want to be able to withdraw $50,000 each year for 25 years. Your account earns 9% interest.
a) How much do you need in your account at the beginning?
b) How much total money will you pull out of the account?
c) How much of that money is interest?

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