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?

## Answer this Question

## Related Questions

- Corporate Finance - A 15-year annuity pays $1,750 per month, and payments are ...
- finance - find the amount for each ordinary annuity if there are payments of $...
- Finite Math and Applied Calculus - Betty Sue sets up a retirement account. For ...
- math - Suppose a student wants to be a millionaire in 40 years. If she has an ...
- math - Suppose a student wants to be a millionaire in 40 years. If she has an ...
- algebra - Suppose a student wants to be a millionaire in 40 years. If she has an...
- Algebra - Suppose a student wants to be a millionaire in 40 years. If she has an...
- algebra - 3. Suppose a student wants to be a millionaire in 40 years. If she has...
- Finite Math - Malika Agwani starts her career at the age of 25 and makes equal ...
- math - James has set up an ordinary annuity to save for his retirement in 18 ...