A man is retiring in 10 years and has $10000 in a tax shelter with an...

A man is retiring in 10 years and has $10000 in a tax shelter with an annual eﬀective rate of 6% for 10 years. Every withdrawal made in the next 51 2 years is charged a penalty in the amount of 10% of the withdrawal from the account. If equal size withdrawals (not including any penalties) are made at the end of years 3, 4, 5, 6, 7, 8, and the value of the fund after 10 years is $9000, what was the amount of each withdrawal? (Without using excel)

Expert Solution

jeff jeffy answered 1 year ago

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