Answer:
Present value (PV) = 50,000
Future value (FV) = X
Rate of Interest (R) = 6%
No. of years (N) = 17
Balance Remain at the end of 17 years is 100,000
Thus, the Computation is as follows
FV = PV*((1+R/100)^N)/(1+R/100)
FV= 50,000*((1+6/100)^17) / (1+6/100)
FV= 50,000*((1.06)^17) / 1.06
FV= 50000*2.7/1.06
FV= 135,000/1.06
FV = $127,358.49
Amount is required in the account = $ 100,000
As, the total amount of 5 withdrawals ($127,358.49 - $100,000) = $27,358.49
The equal amount of Annual Withdrawal (Total Withdrawal / 5) = $5,468.82
