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TJ Invested a Retirement Gratuity of $43 000

Question 77

Essay

TJ invested a retirement gratuity of $43 000.00 in an income averaging annuity paying 7% compounded monthly. He withdraws the money in equal monthly amounts over five years. If the first withdrawal is made nine months after the deposit, what is the size of each withdrawal?

Correct Answer:

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FV = 43000(1.0058333...

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