Joe Hernandez has inherited $25,000 and wishes to purchase an annuity that will provide him with a

Question:

Joe Hernandez has inherited $25,000 and wishes to purchase an that will provide him with a steady income over the next 12 years. He has heard that the local savings and loan association is currently paying 6 percent on an annual basis. If he were to deposit his funds, what year-end equal-dollar amount (to the nearest dollar) would he be able to withdraw annually such that he would have a zero balance after his last withdrawal 12 years from now?
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,... Compound Interest
Compound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan. Thought to have originated in 17th century Italy, compound...