Dan is 65 and is retiring this year. He currently has $1 million in his account. Assume his life expectancy is 95 and the current interest rate is 9%. Dan wants to use up all the money before he dies. How much should he withdraw at the beginning of each month to cover his daily living expenses? A. $89,299.40 B. $7,986.33 C. $7,441.62 D. $8,046.23
Dan is 65 and is retiring this year. He currently has $1 million in his account. Assume his life expectancy is 95 and the current interest rate is 9%. Dan wants to use up all the money before he dies. How much should he withdraw at the beginning of each month to cover his daily living expenses? A. $89,299.40 B. $7,986.33 C. $7,441.62 D. $8,046.23
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Dan is 65 and is retiring this year. He currently has $1 million in his account. Assume his life expectancy is 95 and the current interest rate is 9%. Dan wants to use up all the money before he dies. How much should he withdraw at the beginning of each month to cover his daily living expenses?
A. $89,299.40
B. $7,986.33
C. $7,441.62
D. $8,046.23
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