Your Uncle Has $375,000 and Wants to Retire

question 22

Multiple Choice

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

• A)$28,843.38
• B)$30,361.46
• C)$31,959.43
• D)$33,641.50
• E)$35,323.58

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Definitions:

Accounts Payable

The amount of money owed by a company to its creditors for goods or services that have been delivered or used but not yet paid for.

Credit

An accounting entry that increases liabilities or equity or decreases an asset or expense.

Signature Card

A form signed by a bank customer that the bank uses to verify signature authenticity on all checks.