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

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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
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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

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