You Deposit $5,000 Per Year at the End of Each

question 162

Multiple Choice

You deposit $5,000 per year at the end of each of the next 25 years into an account that pays 8% compounded annually.How much could you withdraw at the end of each of the 20 years following your last deposit if all withdrawals are the same dollar amount? (The twenty-fifth and last deposit is made at the beginning of the 20-year period.The first withdrawal is made at the end of the first year in the 20-year period.)

• A) $18,276
• B) $27,832
• C) $37,230
• D) $43,289