Financial accounting question Upon retirement, you deposit $1,250,000 into aninvestment account earning 4.5% annual interest. Ifyou withdraw $85,000 at the end of each year forliving expenses, how much will you have remaining (orhow much will you owe) after 30 years?

given data:Initial deposit (P) = $1,250,000Annual interest rate (r) = 4.5% (0.045 in decimal)Annual…

Answered: Upon retirement, you deposit $1,250,000…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 14E

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Upon retirement, you deposit $1,250,000 into an investment account earning 4.5% annual interest. If you withdraw $85,000 at the end of each year for living expenses, how much will you have remaining (or how much will you owe) after 30 years?