A college professor retires with $1,500,000. How much can he withdraw yearly for the next 20...
Question:
A college professor retires with $1,500,000. How much can he withdraw yearly for the next 20 years if the money is invested in a stock portfolio that is paying 12% per year?
Annuity:
An annuity specifies a series of absolute payouts under a particular financial arrangement over a predetermined period of time. The types of annuity consist of intermediate annuity, deferred annuity, variable annuity, lump sum annuity, etc.
Answer and Explanation: 1
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View this answerThe amount that can be yearly withdrawn by the professor is $200,818.17 that is evaluated as follows by using the amount upon retirement (PV), rate of...
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What is Annuity? - Definition & Formula
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Chapter 2 / Lesson 7
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Learn about annuities. Understand what an annuity is, examine the annuity formula and learn how to calculate its future value, and see examples of annuities.
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