### Retirement Annuity Decision-MakingAn ordinary annuity that earns 7.3% compounded monthly has a current balance of $600,000. The owner of the account is about to retire and must decide how much to withdraw from the account each month. Find the number of withdrawals under each of the following options:- **(A) $5000 monthly**- **(B) $4000 monthly**- **(C) $3000 monthly**#### Question:**(A)** Select the correct choice below, and, if necessary, fill in the answer box to complete your choice.- **O A.** The total number of withdrawals of $5000 will be [ ] - **O B.** The withdrawals of $5000 continue forever.

We will apply the required formula for all 3 monthly payments and will calculate the number of…

Answered: ordinary annuity that earns 7.3%…

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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please show all work and state answer clearly
You expect to have the given amount in an account with the given terms. Find how much you can withdraw periodically in order to make the account last the specified amount of time. Round your answer to the nearest cent. Account balance: $600,000 Interest rate: 4.85% Frequency:monthly Time: 17 years

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