You want to be able to withdraw 25000 each year for 15 years. Your account earns 6% interest. How much do you need in your account at the beginning 

To determine how much you need in your account initially to withdraw $25,000 each year for 15 years, while the account earns 6% interest, we can use the formula for the **present value of an annuity**.

The formula for the present value of an annuity is:

\[
PV = P \times \frac{1 - (1 + r)^{-n}}{r}
\]

Where:
- $ PV $ is the present value (the amount you need to have initially).
- $ P $ is the annual withdrawal ($25,000 in this case).
- $ r $ is the annual interest rate (6% or 0.06).
- $ n $ is the number of years (15 years).

Let's calculate:

\[
PV = 25000 \times \frac{1 - (1 + 0.06)^{-15}}{0.06}
\]

Now, I will compute this value.You will need approximately **$242,806.22** in your account at the beginning to be able to withdraw $25,000 each year for 15 years, while earning 6% interest.

Would you like further details or have any questions?

Here are some related questions to explore:
1. What if the interest rate was 5% instead of 6%?
2. How would the amount change if you wanted to withdraw for 20 years instead of 15?
3. What would happen if you increased the annual withdrawal amount?
4. How does the calculation differ if the withdrawals were monthly instead of annually?
5. How much interest would you earn over the entire 15-year period?

**Tip:** When dealing with annuities, understanding the relationship between interest rates and withdrawal periods is key to long-term financial planning.

You want to be able to withdraw 25000 each year for 15 years. Your account earns 6% interest. How much do you need in your account at the beginning?

Find out how much you need to save to withdraw $25,000 annually for 15 years with a 6% interest rate. This problem involves the Present Value of Annuity formula, helping you understand key financial concepts like time value of money and interest calculations.

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