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

question 42

Multiple Choice

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

-Debbie has $368,882 accumulated in a 401K plan. The fund is earning a low, but safe, 3% per year. The withdrawals will take place annually starting today. How soon will the fund be exhausted if Debbie withdraws $30,000 each year?

• A) 15 years.
• B) 16 years.
• C) 14 years.
• D) 12.3 years.

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Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that sellers are willing to supply.

Minimum Price

Is the lowest price at which a product or service can be sold, often set by law or regulation to protect producers or consumers.

Producer

An individual, company, or entity that creates goods or provides services.