Question

Suppose you earned a $160,000 bonus this year and invested it at 8.25% per year. How...

Suppose you earned a $160,000 bonus this year and invested it at 8.25% per year. How much could you withdraw at the end of each of the next 20 years?

Select the correct answer. a. $16,604.70 b. $16,600.70 c. $16,592.70 d. $16,596.70 e. $16,608.70

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Answer #1

This question can be solved using the PMT function in excel.

Hence, the correct answer is Option b. $16,600.70

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