Question: Future and present value of an annuity Example: A person plans to make annual deposits of $2 000 for 25 years into an account that

Future and present value of an annuity

Example: A person plans to make annual deposits of $2 000 for 25 years into an account that earns 6.5% compounded annually, and then make 20 equal annual withdrawals, reducing the balance in the account to zero. How much each withdrawal will be? How much total interest is earned during the 45-year process?

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