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The annual withdrawal amount has a computed value of $28,532.45.
The formula for the amount that can be withdrawn at the beginning of each of the next 20 years is given as:
R= [tex]\frac{i}{1- (1 + i)^{-n} } X P[/tex]
Where;
R = annual withdrawal
i = interest rate = 8.25%
P = Principal amount = $275,000
n = number of years = 20
R = [tex]\frac{8.25}{1- (1 + 8.25)^{-20} } X 27500[/tex]
R = 28,532.45
What is guaranteed annual withdrawal amount on annuity?
The "Guaranteed Annual Withdrawal Amount" or "GAWA" is the maximum sum that may be withheld from the Contract each Contract Year in line with the provisions of the Section "GWBL (Guaranteed Withdrawal Benefit For Life)" and which is insured for the remainder of your life (and the lifetime of a surviving spouse, if Joint Life payments are elected).
Does invested mean Interested?
If someone has a personal stake in something that causes them to be biased in its favor, they are said to have a vested interest in it. People discussing financial investments occasionally use the word "invested interest" in a pun, but most of the time, you may assume that they are spelling it incorrectly.
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