accounting

assume you want to retire next year. at that time you expect to have a retirement fund with 300,000 in it. assume you need to take out the money in the form of an annuity over a 20 year period, with the first withdraw occuring at the end of the first year of retirement. how much must each withdraw be, assuming an appropriate interest rate (annual compounding) of 5%

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  1. Follow the simple annuity formula. (Google: annuity, formula for more information and explanations)

    P = B / ( (1 -(1/(1+i)^n) / i)
    where i= interest rate = .05
    n = number of year = 20
    B = initial balance = 300,000

    hint: for P, I get 24,072.78

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