Your uncle has $375,000 and wants to retire.He expects to live for another 25 years,and he also expects to earn 7.5% on his invested funds.How much could he withdraw at the beginning of each of the next 25 years and end up with zero in the account?
A)$28,243.21
B)$29,729.70
C)$31,294.42
D)$32,859.14

Question

Quizplus · Accepted Answer

To find the annual withdrawal amount, we use the formula for the present value of an annuity. Solving for the withdrawal amount with the given interest rate and time period results in approximately $31,294.42.

Your Uncle Has $375,000 and Wants to Retire