Jack receives a $25000 one time bonus from his employer today and immediately invests it at 8% with annual compounding. 14 years from now, Jack plans to withdraw $2300 every six months to use as his retirement income. If the income annuity can earn 3.25% compounded semi annually, what is the term of the annuity before it is depleted.

Answer rating: 100% (QA)

To determine the term of the annuity before it is depleted we need to calculate the initial amount i... View the full answer