Your Uncle Has $300,000 Invested at 7

question 18

Multiple Choice

Your uncle has $300,000 invested at 7.5%, and he now wants to retire. He wants to withdraw $35,000 at the END of each year, beginning at the end of this year. He also wants to have $25,000 left to give you when he ceases to withdraw funds from the account. For how many years can he make the $35,000 withdrawals and still have $25,000 left in the end?

• A) 14.96
• B) 15.71
• C) 16.49
• D) 17.32