Question

Imagine that a 65 year old woman and her husband have just retired with a combined...

Imagine that a 65 year old woman and her husband have just retired with a combined retirement nest egg of $1.5 million. If they withdraw $150,000 at the end of each year, how many years will it be before they exhaust their retirement savings assuming that their retirement account earns 3% interest? Round your answer to the nearest year. (This is another A = B x C question.)

show work

A. 10

B. 12

C. 14

D. 16

E. 18

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Option B

it will take 12 years

--------

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Imagine that a 65 year old woman and her husband have just retired with a combined...
Imagine that a 65 year old woman and her husband have just retired with a combined retirement nest egg of $1.5 million. If they withdraw $150,000 at the end of each year, how many years will it be before they exhaust their retirement savings assuming that their retirement account earns 3% interest? Round your answer to the nearest year. (This is another A = B x C question.) show work A. 10 B. 12 C. 14 D. 16 E. 18
Your aunt is 65 years old and has just retired with $750,000 in her IRA account...
Your aunt is 65 years old and has just retired with $750,000 in her IRA account She expects the investments in this account to earn a return of 8.5% each year. She also expects to live for 30 years in retirement. She plans to withdraw an equal amount from this account each year starting now and also plans to leave $50,000 to you in 30 years. How much can she withdraw per year from the account?
You have a couple who are 31 years old, and want to retire at the age...
You have a couple who are 31 years old, and want to retire at the age of 67. Knowing that, the couple has a combined annual income of $95,000 today. 1. If the couple want to procrastinate their retirement savings until they reach 35, and if retirement savings will grow at a rate of 8%, how much would they need to save per year, at the end of every year, in order to achieve the $2 million target by the...
This is the beginning of a new year. Having just graduated from college with a degree...
This is the beginning of a new year. Having just graduated from college with a degree in finance, you landed a job as a personal finance counselor with a large wealth management firm. Your very first client is a young couple who want to put their financial business in order and develop a plan for their retirement and future family needs. Both the husband and the wife are 31 years old and in stable employment. They want to retire together...
Molly Lincoln, a 25-year-old personal loan officer at First National Bank, understands the importance of starting...
Molly Lincoln, a 25-year-old personal loan officer at First National Bank, understands the importance of starting early when it comes to saving for retirement. She has committed $2,000 per year for her retirement fund and assumes that she'll retire at age 65. How much will Molly have accumulated when she turns 65 if she invests in equities and earns 10 percent on average? Round your answer to the nearest dollar. $   Molly is urging her friend, Isaac Stein, to start...
PROBLEM 7 – Time-Value-of-Money and Retirement Planning Ellen is 30 years old and plans to start...
PROBLEM 7 – Time-Value-of-Money and Retirement Planning Ellen is 30 years old and plans to start saving $10,000 annually, toward her retirement. She will put the $10,000 into an investment account at the end of each year. She will put this savings into a mutual fund. She intends to retire in 35 years. Upon her retirement, she will move her savings, (i.e. her “nest egg”) into a relatively low-risk account that earns 4.0% annually. Her first withdrawal will be made...
Tess is a 22 year old woman who comes into the clinic with her husband Louis...
Tess is a 22 year old woman who comes into the clinic with her husband Louis for a prenatal check up on may 10, 2020. this is her first pregnacy, and they are both very excited about starting a family. her physical examination is within normal limits, but she reports nausea in the mornings. her LNMP was march 1,2020. Tess says that her and her husband Louis would like to take a vacation together before starting their family responsibilities. they...
A 35-year-old woman decides to put funds into a retirement plan. She can save $2,000 a...
A 35-year-old woman decides to put funds into a retirement plan. She can save $2,000 a year and earn 7 percent on this savings. How much will she have accumulated if she retires at age 65? Use Appendix C to answer the question. Round your answer to the nearest dollar. $    At retirement how much can she withdraw each year for 20 years from the accumulated savings if the savings continue to earn 7 percent? Use Appendix D to answer...
Marisa Gale, a 25-year-old personal loan officer at Second National Bank, understands the importance of starting...
Marisa Gale, a 25-year-old personal loan officer at Second National Bank, understands the importance of starting early when it comes to saving for retirement. She has designated $3,000 per year for her retirement fund and assumes she'll retire at age 65. How much will she have if she invests in CDs and similar money market instruments that earn 6 percent on average? Round your answer to the nearest dollar. $    How much will she have if instead she invests in...
One​ December, a​ 101-year-old woman died and left ​$25 million to a university. This fortune was...
One​ December, a​ 101-year-old woman died and left ​$25 million to a university. This fortune was accumulated through shrewd and patient investment of a ​$4000 nest egg over the course of 53 years. In turning ​$4000 into ​$25 ​million, what were the total and annual​ returns? How did her annual return compare to the​ 6.3% average annual return for​ stocks? Her total return on the investment was ____​%. ​(Type a whole​ number.) Her annual return was ____​%, which is higher...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT