Your Uncle Has $375,000 and Wants to Retire

question 14

Multiple Choice

Your uncle has $375,000 and wants to retire.He expects to live for another 25 years,and he also expects to earn 7.5% on his invested funds.How much could he withdraw at the beginning of each of the next 25 years and end up with zero in the account?

• A)$28,243.21
• B)$29,729.70
• C)$31,294.42
• D)$32,859.14
• E)$34,502.10

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Definitions:

Dividends

Profit distributions paid out to shareholders by a company.

Shares

Ownership units in a corporation, representing a portion of the company's capital.

Total Percentage Return

A metric that measures the total return on an investment, including both capital gains and dividends or interest, as a percentage of the initial investment.

Dividends

Disbursements from a company to its shareholders, customarily extracted from the company's net income.