Posted by **Elizabeth** on Monday, July 11, 2011 at 1:13pm.

1. A man establishes an annuity for retirement by depositing $50,000 into an account that pays 7.2% compounded monthly. Equal monthly withdrawals will be made each month for 5 years, at which time the account will have a zero balance. Each year taxes must be paid on the interest earned by the account during that year. How much interest was earned during the first year?