With $1.5 million in an account expected to earn 8% annually over the retiree's 30 years of life expectancy, what annual annuity can be withdrawn, beginning today?
A) $112,148.50
B) $120,000.00
C) $123,371.44
D)$133,241.15

Question

Quizplus · Accepted Answer

$1,500,000 = Pmt_OA {(1/.08) - [1/.08(1.08)³⁰]}PMT_OA = $133,241.15PMT_AD = PMT_OA/(1 + r)PMT_AD = $133,241.15_/1.08PMT_AD = $123,371.44

With $15 Million in an Account Expected to Earn 8% Annually