Your Uncle Has $955,000 and Wants to Retire

question 121

Multiple Choice

Your uncle has $955,000 and wants to retire.He expects to live for another 25 years,and he also expects to earn 7.5% on his invested funds.How much could he withdraw at the beginning of each of the next 25 years and end up with zero in the account?

• A) $79,696.46
• B) $77,305.56
• C) $74,914.67
• D) $90,057.00
• E) $61,366.27

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Definitions:

Quasi Contract

An obligation imposed by law to prevent unjust enrichment, treating the parties as if a contract exists, even though one does not.

Unjustly Enriched

A legal concept referring to a situation where a person or entity benefits at another’s expense without a legal justification, often leading to restitution.

Stated Price

The specific price that is set and declared in a contract or agreement for goods or services.

Remedies

Legal means for a party to enforce a right or redress a wrong.