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Mathew plans to retire in 6 years from today with $1,000,000 in his retirement account. If he receives $175,000 per year from his account and he receives his first $175,000 payment in 6 years from today and his last $175,000 payment in 12 years from today, then what is the expected annual return for his account? A. 7.36% B. 1.41% C. 5.35% D. Answer not listed or not possible. E. 1.99%

Mathew plans to retire in 6 years from today with $1,000,000 in his retirement account. If he receives $175,000 per year from his account and he receives his first $175,000 payment in 6 years from today and his last $175,000 payment in 12 years from today, then what is the expected annual return for his account? A. 7.36% B. 1.41% C. 5.35% D. Answer not listed or not possible. E. 1.99%

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mathew plans to retire in 6 years from today with $1,000,000 in his retirement account. If he receives $175,000 per year from his account and he receives his first $175,000 payment in 6 years from today and his last $175,000 payment in 12 years from today, then what is the expected annual return for his account? A. 7.36% B. 1.41% C. 5.35% D. Answer not listed or not possible. E. 1.99%
Transcribed Image Text:Mathew plans to retire in 6 years from today with $1,000,000 in his retirement account. If he receives $175,000 per year from his account and he receives his first $175,000 payment in 6 years from today and his last $175,000 payment in 12 years from today, then what is the expected annual return for his account? A. 7.36% B. 1.41% C. 5.35% D. Answer not listed or not possible. E. 1.99%
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