Problem $7-21$

Auntie Kitty sells her home for $$150,000,$ which is then invested to earn $6$ percent annually. If her life expectancy is ten years, what is the maximum amount she can annually spend on a nursing home, doctors, and taxes? Use Appendix D to answer the question. Round your answer to the nearest dollar.

The maximum amount that can be annually spend is $

If the return were to double to $12$ percent, will the amount she may spend each year more than double? Use Appendix D to answer the question. Round your answer to the nearest dollar.

If the return were to double, the amount that can be annually spend will and will be equal to $