Your uncle has $375,000 and wants to retire. He expects to live for another 25 years and to earn 7.5% on his invested funds. How

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3 years ago

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Your uncle has $375,000 and wants to retire. He expects to live for another 25 years and to earn 7.5% on his invested funds. How

much could he withdraw at the end of each of the next 25 years and end up with zero in the account? Select one: a. $28,843.38 b. $30,361.46 c. $31,959.43 d. $33,641.50 e. $35,323.58

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1 answer:

Alex777 [14] · Answer 1 · 2022-01-30T10:44:01+03:00

Answer:

d. $33,641.50

Explanation:

In this question, we use the PMT formula which is shown in the spreadsheet.

The NPER represents the time period.

Given that,

Present value = $375,000

Future value = $0

Rate of interest = 7.5%

NPER = 25 years

The formula is shown below:

= -PMT(Rate;NPER;PV;FV;type)

So, after solving this, the answer would be $33,641.50