Your uncle has $340,000 invested at 7.5%, and he now wants to retire. He wants to withdraw $35,000 at the end of each year, star
ting at the end of this year. He also wants to have $25,000 left to give you when he ceases to withdraw funds from the account. For how many years can he make the $35,000 withdrawals and still have $25,000 left in the end
1 answer:
Answer:
17.27 years
Explanation:
For this question we use the NPER formula that is shown on the attachment below:
Provided that
Present value = $340,000
Future value = $25,000
PMT = $35,000
Rate of interest = 7.5%
The formula is shown below:
= NPER(Rate;PMT;-PV;FV;type)
The present value come in negative
So, after solving this, the number of year is 17.27 years
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The amount of money in the account at the end of the period will be $2907.89.
<h3>What is the investment?</h3>- The dedication of an asset to achieve a gain in value through time is referred to as an investment.
- Investment necessitates the sacrifice of a current item, such as time, money, or effort.
- The goal of investing in finance is to earn a return on the invested asset.
- A gain (profit) or loss realized through the sale of a property or investment, unrealized capital appreciation (or depreciation), or investment income such as dividends, interest, or rental income, or a mix of capital gain and income, may constitute the return.
Step 1: Define
Identify variables
P = 930
t = 19
r = 6% = 0.06
Step 2: Find Interest
Substitute in variables [Compounded Continuously Formula]:
[Exponents] Multiply:
Evaluate exponents:
Multiply:
Therefore, the amount of money in the account at the end of the period will be $2907.89.
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