I understand the awnser to this question is B but can you explain in detail why it is B. You inherit $300,000 from your parents and want to use the money to supplement the money on your 65th birthday, the day you retire. You want to withdraw equal amounts at the end of each of the next 20 years. What constant amount can you witho nothing remaining at the end of 20 years if you are earning 7% interest per year? A) $15,000 B) $28,318 C) $33,574 D) $39, 113

I understand the awnser to this question is B but can you explain in detail why it is B. You inherit $300,000 from your parents and want to use the money to supplement the money on your 65th birthday, the day you retire. You want to withdraw equal amounts at the end of each of the next 20 years. What constant amount can you witho nothing remaining at the end of 20 years if you are earning 7% interest per year? A) $15,000 B) $28,318 C) $33,574 D) $39, 113

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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9. Crystal Nelson would love to retire to Florida in 5 years. What amount should Crystal invest today so she can withdraw $46,500 at the end of each year for 20 years after she retires? Assume Crystal can invest money at 5% compounded annually.
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