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Time value of money

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Your uncle has $300,000 invested at 7.5%, and he now wants to retire. He wants to withdraw $35,000 at the beginning of each year, beginning immediately. He also wants to have $25,000 left to give you he ceases to withdraw funds from the account.

For how many years can he make the $35,000 withdraws and still have $25,000 left in the end?

Please use:
PV =
PMT =
FV =
i =
n =

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Solution Summary

The solution explains how to calculate the number of years over with the withdrawals can be made

Solution Preview

In this case we have the following
PV = amount now = $300,000
PMT = amount to be ...

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