Determine the maximum annual withdrawal


Problem:

Bill Shaffer wishes to have $200,000 in a retirement fund 20 years from now. He can create the retirement fund by making a single lump sum deposit today. If upon retirement in 20 years Bill plans to invest the $200,000 in a fund that earns 11 percent, what is the maximum annual withdrawal he can make over the following 15 years?

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Finance Basics: Determine the maximum annual withdrawal
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