Your Father's Employer Was Just Acquired,and He Was Given a Severance

question 35

Multiple Choice

Your father's employer was just acquired,and he was given a severance payment of $375,000,which he invested at a 7.5% annual rate.He now plans to retire,and he wants to withdraw $35,000 at the end of each year,starting at the end of this year.How many years will it take to exhaust his funds,i.e.,run the account down to zero?

• A)22.50
• B)23.63
• C)24.81
• D)26.05
• E)27.35

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Definitions:

Self-concept

An individual's perception of their own strengths, weaknesses, thoughts, beliefs, motivation, and emotions.

Big Five Factor Model

A model that identifies five broad dimensions of personality traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Extraversion

is a personality trait characterized by outgoingness, high energy, and positive emotions, preferring social gatherings and being energized by external stimuli.

Neuroticism

A personality trait characterized by long-term tendencies to experience negative emotional states such as anxiety, anger, or depression.