Present value of an annuity

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Present Value of an Annuity (please show work)

1. Pistol and Polly saved up $750,000 for their retirement. They would like to live off of this money for 10 years. If their investments earn a “safe” 5%, how much money would they have to spend each year? a.$100,870.17 b. $92,468.16 c. $97,128.87 d. $63,240.97

2. If Pistol and Polly end up living for 15 years on their $750,000, how much could they spend each year?

Reference no: EM131533229

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