Dan is 65 and is retiring this year. He currently has $1 million in his account....

80.2K

Verified Solution

Question

Finance

Dan is 65 and is retiring this year. He currently has $1 millionin his account. Assume his life expectancy is 95 and the currentinterest rate is 9%. Dan wants to use up all the money before hedies. How much should he withdraw at the beginning of each month tocover his daily living expenses?
A. $89,299.40
B. $7,986.33
C. $7,441.62
D. $8,046.23

Answer & Explanation Solved by verified expert

3.7 Ratings (602 Votes)

Information provided Present value 1000000 Time 95 years 65 years 30 years12 360 months Interest rate 912 075 per month The question is concerning finding monthly withdrawal of an See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

Dan is 65 and is retiring this year. He currently has $1 millionin his account. Assume his life expectancy is 95 and the currentinterest rate is 9%. Dan wants to use up all the money before hedies. How much should he withdraw at the beginning of each month tocover his daily living expenses?A. $89,299.40B. $7,986.33C. $7,441.62D. $8,046.23