Your Father Now Has $1,000,000 Invested in an Account That

question 114

Multiple Choice

Your father now has $1,000,000 invested in an account that pays 9.00%.He expects inflation to average 3%,and he wants to make annual constant dollar (real) end-of-year withdrawals over each of the next 20 years and end up with a zero balance after the 20th year.How large will his initial withdrawal (and thus constant dollar [real] withdrawals) be?

• A)$71,725.49
• B)$75,500.52
• C)$79,474.23
• D)$83,657.08

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Definitions:

Duty To Act

A legal obligation that requires a person to take a certain action or perform a certain duty, often in emergency situations to avoid liability for harm caused by nonaction.

Innocent Conduct

Actions or behavior that are performed without malice or intent to harm, often considered in legal contexts to determine culpability or liability.

Further Harm

Additional injury or damage that occurs or may occur as a consequence of an initial act or occurrence.

Restatement Third

A collection of model legal doctrines, developed by the American Law Institute, that aims to clarify, modernize, and otherwise improve various aspects of the law.