Using MS excel calculate the Annual Worth Method .

= 2. An investor has a principal amount of $P. If he desires a payout (return) of 0.1P each year, how many years will it take to deplete an account that earns 8% per year? 0.1P = P(A/P, 8%, N), so N ~= 21 years. A payout duration table can be constructed for select payout percentages and compound interest rates. Complete the following table. (Note: table entries are years.) Summarize your conclusions about the pattern observed in the table. (5.5) Interest Rate per Year 4% 6% 8% 10% 20.9 Payout per Year 10% (% of principal) 20% 30%