Question

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 invested funds. How much could he withdraw at the beginning of each of the next 25 years and end up with zero in the account?

Answer 1

Answer:

Step-by-step explanation:

I am guessing you are taking an introductory finance class based on the other questions you asked. I answered a question regarding T-bond yields moments ago.

This is an annuity problem, break out your BAII + or you HP 12-C and get to calculating

PV = 1.135,000, FV = 0, I / Y = 7.5%, N = 25, CPT PMT

be sure BGN mode is set to END

Your uncle can get 101,822 per year for the next 25 years.