Question

Your uncle has $375,000 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?

$28,243.21


$29,729.70


$31,294.42


$32,859.14


$34,502.10

Answer 1

$31,294.42

Step-by-step explanation:

In this question, we use the PMT formula which is shown in the spreadsheet.

The NPER represents the time period.

Given that,

Present value = $375,000

Assuming figure - Future value or Face value = $0

NPER = 25 years

Rate = 7.5%

The formula is shown below:

= -PMT(Rate,NPER, PV,FV,Type)

So, after solving this, the answer would be $31,294.42