Explain amount withdrawal

Reference no: EM13176728

You put $20000 on deposit on your thirtieth birthday at 5 percent compounded annually. On your fortieth birthday, the account begins earning 6 percent. Then on your fiftieth birthday, it begins earning 7 percent. You plan to withdraw equal annual amounts on your sixty-first, sixty-second,..., seventieth birthdays.
a. How much will be your annual withdrawal?

b. On your sixty-fifth birthday, you decide to withdraw the entire amount remaining. How much do you withdraw?

Reference no: EM13176728

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