You sell valuable artifacts from your household estate for $200,000 and want to use the money to supplement your retirement.You receive the money on your 60^th birthday,the day you retire.You want to withdraw equal amounts at the end of each of the next 25 years.What constant amount can you withdraw each year and have nothing remaining at the end of 20 years if you are earning 7% interest per year?

Question

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The correct answer is A. $17,162.The present value of the withdrawals is $200,000. The future value of the withdrawals is $0. The interest rate is 7%. The number of years is 25. The constant amount that can be withdrawn each year is $17,162.

You Sell Valuable Artifacts from Your Household Estate for $200,000