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GrogVix [38]
3 years ago
9

Your aunt wants to retire and has $375,000. She expects to live for another 25 years, and she also expects to earn 7.5% on her i

nvested funds. How much could she withdraw at the beginning of each of the next 25 years and end up with zero in the account
Business
1 answer:
steposvetlana [31]3 years ago
3 0

Answer:

$33,641.50

Explanation:

The computation of the amount withdrawn for the year is shown below:

As we know that

Present value = Annual withdrawals × Present value of annuity factor (7.5%,25)  

$375,000 = Annual withdrawals × 11.14694586

So, annual withdrawals is

= $375,000 ÷ 11.14694586

= $33,641.50

We simply applied the above formula so that the annual withdrawn could come

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Answer:

re 17.4600%

Explanation:

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8 0
3 years ago
Determine the maturity date and compute interest for each note. (Use 360 days a year. Do not round intermediate calculations.) N
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Answer:

Note   Contract Date   Principal   Interest Rate   Period of Note (Term)

1              March 7            $12,000           5 %                    60 days

2.             May 21             $18,000           7%                      90 days

3.            October 26      $ 14,000           4%                     45 days

1. Maturity date = 6 May

Interest expenses = $12,000*5%*60/360

Interest expenses = $100

2. Maturity date = 19 August

Interest expenses = $18,000*7%*90/360

Interest expenses = $315

3. Maturity date = 10 December

Interest expenses = $14,000*4%*45/360

Interest expenses = $70

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