Answer:
The correct answer is C.
Step-by-step explanation:
Giving the following information:
Present value= $250,000
Number of periods= 25*12= 300 months
Interest rate= 0.08/12 = 0.006667
To calculate the monthly income, we need to use the following formula:
Monthly withdraw= (PV*i) / [1 - (1+i)^(-n)]
Monthly withdraw= (250,000*0.006667) / [1 - [1.006667^-300)
Monthly withdraw= $1,929.6