Your uncle has $340,000 invested at 6.3%, and he now wants to retire. He wants to withdraw $35,000 at the end of each year, starting at the end of this year. He also wants to have $25,000 left to give you when he stops withdrawing funds from the account. For how many years can he make the $35,000 withdrawals and still have $25,000 left at the end? Your answer should be between 12.32 and 20.34, rounded to 2 decimal places, with no special characters.
Present value is the current worth of a future sum of money, given a specific interest rate or discount rate. It is the concept that money available in the future is worth less than the same amount of money in the present, because of the time value of money. Future value (FV) refers to the value of an investment or an asset at a specified point in the future, assuming a specified rate of return. It is the expected value of a cash flow or a series of cash flows that will occur in the future, after interest has been applied. Future value is calculated by taking the present value of an investment and adding interest, which results in the value of the investment at a future point in time. Future value calculations are important in financial planning, investing, and determining the worth of assets or liabilities in the future.
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