Question

Nadine is retiring today at age 66 and expects to live to age 82. She has $136,000 in her retirement savings account. She is somewhat conservative with her money and expects to earn 6 percent during her retirement years. How much can she withdraw from her retirement savings each month if she plans to spend her last penny on the morning of her death?
-$1,416.08
-$909.92
-$1,103.56
-$847.78
-$919.46

Answer 1

Answer:

$1,103.56

Explanation:

In this question, we use the PMT formula that is shown in the attachment. Kindly find it below:

Provided that

NPER = (82 - 66) × 12 = 192

Present value = $136,000

Future value = $0

Rate of interest = 6% ÷ 12  months = 0.5%

The formula is shown below:

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

The present value come in negative

So, after solving this, the monthly payment is $1,103.56