What is the largest equal annual withdrawl


Marie Snell recently inherited some bonds (face value $100,000). Marie wantsto cash in the bonds. The 2% annual coupon bonds(interest payable December 31) mature on December 31, 2025, and now it is January 1, 2006. Bonds with similiar risk and maturity yield 12%. If Marie sells the bonds and the proceeds earn 10% compounded annually in an account, what is the largest equal annual withdrawl she could make for two years, beginning today?

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Finance Basics: What is the largest equal annual withdrawl
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