Used as discount rate in finite time annuity formula

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Reference no: EM131958501

You received a high-yield savings account that contains $1,000,000. The account has a 7% annual interest rate and you want to take out a constant amount every year for 40 years.

How much would you be able to withdraw every year? Hint: the annual interest rate should be used as the discount rate in the finite time annuity formula.

Reference no: EM131958501

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