Withdraw for growing annuity

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Reference no: EM131078113

Calculate the first and second year ANNUAL payment that you could withdraw for a "growing annuity" using the following assumptions: Interest rate = 10% Inflation rate = 5% Remaining life expectancy = 29 years Amount invested at retirement date = $800,000 First withdrawal taken at the end of the year. Hint Real Rate: ((1 + interest rate) divided by (1 + inflation rate)) - 1. Round to two decimal places for the interest rate.

Reference no: EM131078113

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