give full explantion **Retirement Withdrawal Plan Analysis***Scenario:*You currently have a total of $2,520,000 in your retirement account. You plan to make a uniform series of annual withdrawals, starting one year from today, over the next 15 years. The goal is to determine the maximum amount you can withdraw annually while ensuring that $175,000 remains in the account immediately after the fifteenth withdrawal. The account accrues interest at an annual rate of 8%.*Key Parameters:*- **Initial Account Balance:** $2,520,000- **Final Balance Requirement:** $175,000- **Annual Interest Rate:** 8%- **Withdrawal Period:** 15 years*Objective:*Calculate the maximum annual withdrawal amount that meets the specified conditions.

You have a total of $2,520,000 in your retirement account right now. You plan on making a uniform series of annual withdrawals (beginning one year from today) for the next 15 years. What is the maximum value of the annual withdrawal if you wish to have $175,000 left in the account immediately after the fifteenth withdrawal? Money in your retirement account earns 8% interest each year.

You have a total of $2,520,000 in your retirement account right now. You plan on making a uniform series of annual withdrawals (beginning one year from today) for the next 15 years. What is the maximum value of the annual withdrawal if you wish to have $175,000 left in the account immediately after the fifteenth withdrawal? Money in your retirement account earns 8% interest each year.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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give full explantion

**Retirement Withdrawal Plan Analysis**

*Scenario:*

You currently have a total of $2,520,000 in your retirement account. You plan to make a uniform series of annual withdrawals, starting one year from today, over the next 15 years. The goal is to determine the maximum amount you can withdraw annually while ensuring that $175,000 remains in the account immediately after the fifteenth withdrawal. The account accrues interest at an annual rate of 8%.

*Key Parameters:*

- **Initial Account Balance:** $2,520,000
- **Final Balance Requirement:** $175,000
- **Annual Interest Rate:** 8%
- **Withdrawal Period:** 15 years

*Objective:*

Calculate the maximum annual withdrawal amount that meets the specified conditions.

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