7.Multiple Choice5.5 years.7.5 years.6.0 years.8.0 years. Present and future value tables of $1 at 3% are presented below:NFV $1PV $1FVA $1PVA $1FVAD $1PVAD $11.030000.970871.00000.970871.03001.0000021.060900.942602.03001.913472.09091.9708731.09273 | 0.915143.09092.828613.18362.913474.1.125510.888494.18363.717104.30913.828611.159270.862615.30914.579715.46844.717106.1.194050.837486.46845.417196.66255.5797171.229870.813097.66256.230287.89236.4171981.266770.789418.89237.019699.15917.230281.304770.7664210.15917.7861110.46398.01969101.343920.7440911.46398.5302011.80788.78611111.384230.7224212.80789.2526213.19209.53020121.42576 | 0.7013814.19209.9540014.617810.25262131.468530.6809515.617810.6349616.086310.95400141.512590.6611217.086311.2960717.598911.63496151.557970.6418618.598911.9379419.156912.29607161.604710.6231720.156912.5611020.761612.93794Debbie has $111,594 accumulated in a 401K plan. The fund is earning a low, but safe, 3% per year. The withdrawals will take place annuallystarting today. How soon will the fund be exhausted if Debbie withdraws $20,000 each year?

Answered: Multiple Choice 5.5 years. 7.5 years.…

Business

Accounting

Multiple Choice 5.5 years. 7.5 years. 6.0 years. 8.0 years.

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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Question

7.Multiple Choice

5.5 years.
7.5 years.
6.0 years.
8.0 years.

Present and future value tables of $1 at 3% are presented below:
N
FV $1
PV $1
FVA $1
PVA $1
FVAD $1
PVAD $1
1.03000
0.97087
1.0000
0.97087
1.0300
1.00000
2
1.06090
0.94260
2.0300
1.91347
2.0909
1.97087
3
1.09273 | 0.91514
3.0909
2.82861
3.1836
2.91347
4.
1.12551
0.88849
4.1836
3.71710
4.3091
3.82861
1.15927
0.86261
5.3091
4.57971
5.4684
4.71710
6.
1.19405
0.83748
6.4684
5.41719
6.6625
5.57971
7
1.22987
0.81309
7.6625
6.23028
7.8923
6.41719
8
1.26677
0.78941
8.8923
7.01969
9.1591
7.23028
1.30477
0.76642
10.1591
7.78611
10.4639
8.01969
10
1.34392
0.74409
11.4639
8.53020
11.8078
8.78611
11
1.38423
0.72242
12.8078
9.25262
13.1920
9.53020
12
1.42576 | 0.70138
14.1920
9.95400
14.6178
10.25262
13
1.46853
0.68095
15.6178
10.63496
16.0863
10.95400
14
1.51259
0.66112
17.0863
11.29607
17.5989
11.63496
15
1.55797
0.64186
18.5989
11.93794
19.1569
12.29607
16
1.60471
0.62317
20.1569
12.56110
20.7616
12.93794
Debbie has $111,594 accumulated in a 401K plan. The fund is earning a low, but safe, 3% per year. The withdrawals will take place annually
starting today. How soon will the fund be exhausted if Debbie withdraws $20,000 each year?

Expert Solution

Step 1

So, correct option is 6 years.

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Please help me with show all calculation thanku
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