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Your father's employer was just acquired, and he was given a severance payment of $5375,000, which he invested today at a 7.5% annual rate (compounded
Your father's employer was just acquired, and he was given a severance payment of $5375,000, which he invested today at a 7.5% annual rate (compounded annually). He wants to withdraw $535,000 at the end of each year, starting one year from today. How many years (rounded to two decimal places) will it take to exhaust his funds. i.e., run the account down to zero? Select one: 23.63 years 24.81 years 22.50 years 26.05 years Your girlfriend just won the Florida lottery. She has the choice of receiving $15,000.000 today or a 20-year annuity of $1, 050,000 per year, with the first payment coming one year from today. What annual rate of return is built into the annuity? Assume annual compounding. Select one: 4.17% 4.58% 3.79% 3.44%
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