You have just received an endowment of $32,976. You plan to put the entire amount in an account earning 8 percent compounded annually and to withdraw $4000 at the end of each year. How many years can you continue to make the withdrawals?
What will be an ideal response?
Answer: Using a financial calculator, i=8, PV=32976, FV=0, solve for PMT=-4000, solve for N=approximately 14 years
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