Question

Your aunt has $820,000 invested at 5.5%, 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. For how many years can she make the $45,000 withdrawals and still have $50,000 left in the end?

	a.	54 years
	b.	55 years
	c.	49 years
	d.	50 years
	e.	53 years

Answer 1

Calculation is shown below

Working is given below