You have just inherited $150,261 from a trust that has matured. you would like to invest the total amount into an account that pays you an annual compounded interest rate of 9.1%, and you would like to make annual withdrawals over the next 20 years such that by the end of this 20 year period, the amount remaining in the account will be zero dollars. determine, from the given information, the amount of the annual withdrawals. round to the nearest cent. a. $16,578.03 c. $15,978.10 b. $162,851.31 d. $15,575.98

A. 16,578.03

Use the formula of the present value of annuity ordinary and solve for pmt

Pmt=pv÷[(1-(1+r)^(-n))÷r]

PMT=150,261÷((1−(1+0.091)^(−20))÷(0.091))=16,578.03

Determine, from the given information, the amount of the annual withdrawals. Round to the nearest cent.

a. $16,578.03

Step-by-step explanation:

Year

                           150.261

116.5782.90413.674147.357

216.5783.16913.409144.188

316.5783.45713.121140.731

416.5783.77112.807136.960

516.5784.11512.463132.845

616.5784.48912.089128.356

716.5784.89811.680123.458

816.5785.34311.235118.115

916.5785.83010.748112.285

1016.5786.36010.218105.925

1116.5786.9399.63998.987

1216.5787.5709.00891.416

1316.5788.2598.31983.157

1416.5789.0117.56774.146

1516.5789.8316.74764.316

1616.57810.7255.85353.590

1716.57811.7014.87741.889

1816.57812.7663.81229.123

1916.57813.9282.65015.195

2016.57815.1951.383(0)

1. 22

2. 1

3. 7

4. 18

step-by-step explanation

e2020 got it right