Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Your aunt has $820,000 invested at 5.5%, and she now wants to retire. She wants to withdraw $45,000 at the beginning of each year,beginning immediately.
Your aunt has $820,000 invested at 5.5%, and she now wants to retire. She wants to withdraw $45,000 at the beginning of each year,beginning immediately. She also wants to have $50,000 left to give you when she ceases to withdraw funds from the account. For how many years can she make the $45,000 withdrawals and still have $50,000 left in the end?
a. | 54 years | |
b. | 55 years | |
c. | 49 years | |
d. | 50 years | |
e. | 53 years |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started