Ms Oksana Doe has just inherited an investment account worth $2,800,000 from her grandparents. The fund earns an annual interest rate of 6%. She plans to make uniform annual withdrawals from the account over the next 25 years. Answer the following two questions: 1. How much will each annual withdrawal be? OA. $223,160 OB. $47,320 OC. $50,960 OD. $232,120 OE. $218.960 2. What will be the balance in the account immediately after making the 8th annual withdrawal? OA. $1,359,098 OB. $1,048,320) OC. $2,294,110 OD. $2,431,991

Ms Oksana Doe has just inherited an investment account worth $2,800,000 from her grandparents. The fund earns an annual interest rate of 6%. She plans to make uniform annual withdrawals from the account over the next 25 years. Answer the following two questions: 1. How much will each annual withdrawal be? OA. $223,160 OB. $47,320 OC. $50,960 OD. $232,120 OE. $218.960 2. What will be the balance in the account immediately after making the 8th annual withdrawal? OA. $1,359,098 OB. $1,048,320) OC. $2,294,110 OD. $2,431,991

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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