Your Aunt Ruth has $520,000 invested at 6.5%,and she plans to retire.She wants to withdraw $40,000 at the beginning of each year,starting immediately.How many years will it take to exhaust her funds,i.e. ,run the account down to zero?

Question

Quizplus · Accepted Answer

The problem involves calculating the number of years it will take to deplete an account with a fixed annual withdrawal and a fixed interest rate. Using the formula for the present value of an annuity due, the correct number of years is approximately 25.04.

Your Aunt Ruth Has $520,000 Invested at 6