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Your uncle has $300,000 invested at 7.5%, and he now wants to retire. He wants to withdraw $35,000 at the end of each year, beginning at the end of this year. He also wants to have $25,000 left to give you when he ceases to withdraw funds from the account. What is the maximum number of $35,000 withdrawals that he can make and still have at least $25,000 left in the account

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abiolataiwo2015

Answer:

14.96

Explanation:

Calculation to determine For how many years can he make the $35,000 withdrawals and still have $25,000 left in the end

Using financial calculator to determine the Number of years

I/YR= 7.50%

PV=$300,000

PMT=$35,000

FV=$25,000

N=?

Hence,

N=14.96 years

Therefore For how many years can he make the $35,000 withdrawals and still have $25,000 left in the end will be 14.96 years

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