Hello Anons,
I hope you are all doing well on this fine day.
I am currently struggling a little in my finance studies and was hoping someone could help me out. I do not want anyone to do any of the problems for me. I just want to understand how it's done. So, I shall not include the question.
Basically, I want to know how to calculate how much money I will have at the end of an annuity period, given that money is being taken out on a monthly (or yearly or so on) basis from the same account. I first assumed that one can calculate the the amount of money that will be in the account at the end of the period and calculate the total withdrawal amount, but I figured that this doesn't work due to how compounding works (it was especially troublesome for me to figure out the full amount of money that will be withdrawn via annuity calculation given the fact that the withdrawal amounts are changing each month due to inflation (I still don't know how to do this either so I would appreciate any help in figuring out what to do here as well)). I cannot just subtract total future values since the withdrawals will affect the amount of money that is being compounded. I could calculate changes in amounts for every period and account for withdrawals that way, but there must be a simpler way to do it.
I would appreciate any assistance in this as I am struggling to figure this out.