Ms Oksana Doe has just inherited an investment account worth $2,800,000 from her grandparents. The fund earns an annual interest rate of 4%. She plans to make uniform annual withdrawals from the account over the next 20 years. Answer the following two questions: 1. How much will each annual withdrawal be? OA. $87,640 OB. $94,080 OC. $206,080 OD. $213,080 OE. $214,200 24** 2. What will be the balance in the account immediately after making the 7th annual withdrawal? OA. $2,057,832 OB. $1,357,440 OC. $1,236,913 D. $2,138,916

Ms Oksana Doe has just inherited an investment account worth $2,800,000 from her grandparents. The fund earns an annual interest rate of 4%. She plans to make uniform annual withdrawals from the account over the next 20 years. Answer the following two questions: 1. How much will each annual withdrawal be? OA. $87,640 OB. $94,080 OC. $206,080 OD. $213,080 OE. $214,200 24** 2. What will be the balance in the account immediately after making the 7th annual withdrawal? OA. $2,057,832 OB. $1,357,440 OC. $1,236,913 D. $2,138,916

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 28P

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