Your uncle has $300,000 invested at 7.5%, and he now wants to retire. He wants to withdraw $35,000 at the BEGINNING of each year, beginning immediately. He also wants to have $25,000 left to give you when he ceases to withdraw funds from the account. For how many years can he make the $35,000 withdrawals and still have $25,000 left in the end?

Question

Quizplus · Accepted Answer

Using the formula for the present value of an annuity due, the number of years he can withdraw $35,000 at the beginning of each year and still have $25,000 left is approximately 13.27 years.

Your Uncle Has $300,000 Invested at 7