Present and Future Value Tables of $1 at 3% Are

question 19

Multiple Choice

Present and future value tables of $1 at 3% are presented below:

-Jimmy has $255,906 accumulated in a 401K plan. The fund is earning a low, but safe, 3% per year. The withdrawals will take place at the end of each year starting a year from now. How soon will the fund be exhausted if Jimmy withdraws $30,000 each year?

• A) 11 years.
• B) 10 years.
• C) 8.5 years.
• D) 8.8 years.

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Definitions:

Pharmacology

The branch of medicine concerned with the uses, effects, and modes of action of drugs.

IQ Testing

The assessment of a person's intellectual capabilities and potential through a series of standardized tasks and puzzles.

Mean

A statistical measure representing the average value in a set of numbers, calculated by dividing the sum of all values by the quantity of numbers.

Standard Deviation

A statistic that measures the dispersion or variability of a dataset relative to its mean, indicating how spread out the data points are.