How much will they be withdrawing each month

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Question - In planning for their retirement in Hawaii, your parents deposited $5,000 at the end of each year for the last 25 years into an investment account. The account earned a constant annual return of 4.56% APR, compounded monthly. Now, at the end of the 25-year period, your parents have transferred their money into an annuity that will earn 2.40% APR compounded monthly. They plan to withdraw an equal amount at the end of every month for the next 10 years. After the 10 years of monthly withdrawals, the account balance will be depleted. How much will they be withdrawing each month?

Reference no: EM132848783

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