Andy has $500,000 and wants to retire. He expects to live for another 30 years a

Question

Andy has $500,000 and wants to retire. He expects to live for another 30 years and to earn 7.15% on his invested funds. How much could he withdraw at the end of each of the next 30 years and end up with zero in the account? Your answer should be between 34.960.00 and 57,550.00, rounded to 2 decimal places, with no special characters. Question 10 5 pts Your uncle has $340,000 invested at 7.1%, and he now wants to retire. He wants to withdraw $35,000 at the end of each year, starting at the end of this vear. Hie also wants to have $25,000 left to give you when he stops withdrawing funds from the account. For how many years can he make the $35,000 withdrawals and still have $25.000 left at the end? Your answer should be between 12 32 and 20-34, rounded to 2 decimal places, with no special characters

Explanation / Answer

1.
Using financial calculagtor:
I/Y=7.15%
N=30
FV=0
PV=500000
CPT PMT

Using excel:
=PMT(7.15%,30,500000)

Withdrawl at the end of each year=$40,902.05

2.
Using financial calculagtor:
I/Y=7.1%
FV=-25000
PV=340000
PMT=-35000
CPT N

Using excel:
=NPER(7.1%,-35000,340000,-25000)

Number of years=16.30224206

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