You Have Accumulated $800,000 for Your Retirement

question 74

Multiple Choice

You have accumulated $800,000 for your retirement.How much money can you withdraw in equal annual beginning-of-the-year cash flows if you invest the money at a rate of 7% for thirty years?

• A)$64,469.12
• B)$60,251.52
• C)$8,469.12
• D)$9,061.96

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Definitions:

Maturity Value

The total amount that will be paid to the investor at the end of a fixed income security's term, including principal and interest.

Interest Expense

The cost incurred by an entity for borrowed funds, typically paid at a set rate over the life of the borrowing.

Notes Payable

Liabilities represented by written promises to pay a specified sum of money, usually with interest, by a certain date.

Notes Payable

A written agreement where the borrower promises to pay back a specified sum to the lender by a certain date.