Question: An ordinary annuity that earns 7 . 5 % compounded monthly has a current balance of $ 5 5 0 , 0 0 0 .

An ordinary annuity that earns

7.5 %

compounded monthly has a current balance of

550, 000 .

The owner of the account is about to retire and has to decide how much to withdraw from the account each month. Find the number of withdrawals under each of the following options.

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