Your aunt has $500,000 invested at 5.4%, and she now wants to retire. She wants to...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Your aunt has $500,000 invested at 5.4%, and she now wants to retire. She wants to withdraw $45,000 at the beginning of each year, beginning immediately. She also wants to have $50,000 left to give you when she ceases to withdraw funds from the account. What is the maximum number of $45,000 withdrawals that she can make and still have at least $50,000 left in the account? (Hint: If your solution for N is not an integer, round down to the nearest whole number.) Your aunt has $500,000 invested at 5.4%, and she now wants to retire. She wants to withdraw $45,000 at the beginning of each year, beginning immediately. She also wants to have $50,000 left to give you when she ceases to withdraw funds from the account. What is the maximum number of $45,000 withdrawals that she can make and still have at least $50,000 left in the account? (Hint: If your solution for N is not an integer, round down to the nearest whole number.)
Expert Answer:
Answer rating: 100% (QA)
The maximum number of 45000 withdrawals that your aunt can make is ... View the full answer
Related Book For
Spreadsheet Modeling & Decision Analysis A Practical Introduction to Management Science
ISBN: 978-0324656633
5th edition
Authors: Cliff T. Ragsdale
Posted Date:
Students also viewed these accounting questions
-
What is the maximum number of electrons in an atom that can have these quantum numbers? a. n = 4 b. n = 5, m = +1 c. n = 5, ms = + 1/2 d. n = 3, = 2 e. n = 2, = 1 f. n = 0, = 0, m = 0 g. n = 2, =...
-
What is the maximum number of electrons that can occupy a g subshell (l = 4)?
-
What is the maximum number of electrons in an atom that can have the following quantum numbers? Specify the orbitals in which the electrons would be found. (a) n = 2, ms = + 1/2; (b) n = 4, m = 11;...
-
Arginine, the most basic of the 20 common amino acids, contains a guanidino functional group in its side chain. Explain, using resonance structures to show how the protonated guanidino group...
-
Resco Corporation and Yapan Corporation operate in the same industry. Resco uses the straight-line method to account for depreciation; Yapan uses an accelerated method. Explain what complications...
-
Saturated water vapor is held in a container at 200C. What is the pressure in the container? If the volume of the container is increased by a) 50%, b) 100%, c) 200%, holding the temperature constant,...
-
Consider an economy with ex ante symmetric, risk-neutral individuals of mass 1, living for two periods with an additive, linear utility function on consumption goods (both durable and nondurable). At...
-
The information that follows is from Rodriguezs Tools Companys April 30, 2014, post-closing trial balance. Required 1. Prepare a classified balance sheet for Rodriguezs Tools. 2. Compute Rodriguezs...
-
Find the standard deviation, for the binomial distribution which has n = 48 and p=3 Round your answer the nearest hundredth. CA =6.66 B. = 3.39 OC. G=0.98 D. = 7.51
-
The proposed rates were not in the range the CEO expected given the pricing analysis. The CEO has asked the pricing actuary to verify the total projected loss cost excluding potential large storm...
-
Per Misdirections in Informed Consent - Impediments to Health Care Innovation Misdirections in Informed Consent - Impediments to Health Care Innovation - Alternative Formats by David Asch et al. Why...
-
If you can tolerate your investment dropping from $800,000 to $600,000 without panic-selling, what is the maximum should you ideally allocate to stocks assuming that the stock market could go down by...
-
Choose the graph that fits the given description. The graph is continuous at a = -3. # -2+
-
What is the present value of a cash flow stream of $1,200 per year annually for 16 years that then grows at 3.2 percent per year forever when the discount rate is 14 percent?
-
What is the blue ocean strategy? What are the features of the blue ocean? What are the differences between the blue and red oceans when compared? What is this strategic approach to using the blue...
-
PART B: Additional information was available after the Financial Statements in Part A were completed. Critically analyze, the effect of each of the following items separately on the affected...
-
Under the periodic inventory method, when goods are purchased for resale on account by a company (like Dillards) the transaction will a) debit inventory and credit accounts payable b) debit purchases...
-
The Home Depot is the leading retailer in the home improvement industry and one of the 10largest retailers in the United States. The company included the following on its January 29, 2012, balance...
-
Creative Confectioners is planning to introduce a new brownie. A small-scale taste test was conducted to assess consumers preferences (Y) with regard to moisture content (X1) and sweetness (X2). Data...
-
Large Lots is planning a seven-day promotion on a discontinued model of 31" color television sets. At a price of $575 per set, the daily demand for this type of TV has been estimated as follows:...
-
a. How many possible solutions are there to this problem? b. Design a spreadsheet model for this problem. How many pieces of stock would have to be cut to produce the windows in this half-hour of...
-
Hawk Skateboards is considering building a new plant. Robert Optimist, the company's marketing manager, is an enthusiastic supporter of the new plant. Roberta Wunder land, the company's chief...
-
Bolus Company is considering the purchase of a new machine. The invoice price of the machine is \($112,000\), freight charges are estimated to be \($3,000\), and installation costs are expected to be...
-
Lafluer Corp. is thinking about opening a soccer camp in southern California. In order to start the camp, the company would need to purchase land, and build four soccer fields and a dormitory-type...
Study smarter with the SolutionInn App