Beginning December 31, 2021, eight equal annual withdrawals will be made.
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Required:
Using the appropriate tables, determine the equal annual withdrawals if $30,000 is invested at an interest rate of 14% compounded annually on:
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1) January 1, 2021
2) December 31, 2021
3) January 1, 2016
What will be an ideal response?
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?C = $6,467.10
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2) The investment is made on the date of the first withdrawal. The calculation is based on the 
formula:
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C = $5,672.90
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3) This is a deferred annuity since the $30,000 investment accrues interest for 6 years before the withdrawals begin.
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C = $14,195.10
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