Find the Periodic Withdrawal for an Annuity of $140,000 at 5

question 89

Multiple Choice

Find the periodic withdrawal for an annuity of $140,000 at 5%, paid out monthly for 17 years. (Assume end-of-period deposits and compounding at the same intervals as deposits.) Round your answer to the nearest cent.

• A) \(P M T = \$ 436.78\)
• B) \(P M T = \$ 408.45\)
• C) \(P M T = \$ 1,018.13\)
• D) \(P M T = \$ 1,020.12\)
• E) \(P M T = \$ 522.04\)

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually derived from profits.

Mergers

The voluntary amalgamation of two or more corporations to form a new entity, sharing resources, liabilities, and profits.

Horizon Problem

A situation in decision-making where the choice is influenced by the limited timeframe considered for the outcome.