You are saving for retirement.To live comfortably,you decide that you will need $2.5 million dollars by the time you are 65.If you assume you are able to do that,and will live 20 more years (until age 85),the amount you can withdraw in each of those years at an interest rate of 5% before your retirement fund is empty is closest to:
A)$72,987
B)$75,606
C)$197,987
D)$200,606

Question

Quizplus · Accepted Answer

D)PV = 2,500,000
FV = 0
I = 5
N = 30
Compute PMT = $200,606.47

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