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Laquita deposits $5500 in her retirement account every year. If her account pays an average 6%...

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Finance

Laquita deposits $5500 in her retirement account every year. Ifher account pays an average 6% interest and she makes 38 depositsbefore she retires, how much monet can she withdraw in 20 equalpayments beginning one year after her last deposit? please showcash flow diagram and solve NOT with excel but with the interestrate formula equations!!!

Answer & Explanation Solved by verified expert
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The total value that will be saved at the end of 38 deposits will be given by finding the future value of annuity FV of annuity P1rn 1r P Periodic payment 5500 r rate per period 6 n number of periods 38 FV of annuity 5500100638 1006 7474731318 This becomes the present value of annuity for future withdrawals Present value of annuity is given by PV of annuity P11rn r P Periodic payment r rate per period 006 n number of periods    See Answer
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