Your uncle has $375,000 and wants to retire. He expects to live for another 25 years, and he also expects to earn 7.5% on his in
vested funds. How much could he withdraw at the beginning of each of the next 25 years and end up with zero in the account?
$28,243.21
$29,729.70
$31,294.42
$32,859.14
$34,502.10
$28,243.21
$29,729.70
$31,294.42
$32,859.14
$34,502.10
1 answer:
Answer:
$31,294.42
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
Assuming figure - Future value or Face value = $0
NPER = 25 years
Rate = 7.5%
The formula is shown below:
= -PMT(Rate,NPER, PV,FV,Type)
So, after solving this, the answer would be $31,294.42
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