How many years will it take to exhaust her funds

Assignment Help Finance Basics
Reference no: EM13258125

Your aunt Ruth has $500,000 invested at 6.5%, and she plans to retire. She wants to withdraw $40,000 at the beginning of each year, starting immediately. How many years will it take to exhaust her funds?

a. 18.62
b. 19.60
c. 20.63
d. 21.71
e. 22.86

 

Reference no: EM13258125

Questions Cloud

Complete set of financial statements : A complete set of Financial Statements for Nestle Company atDecember 31, 2008 would include each of the followings, EXCEPT:
Account receivable effect net income : How does the write-off of a nun collectible account receivable and the recovery of a previously written-off account receivable effect net income?
How many calories are potentially provided : How many calories are potentially provided by 25 grams of fat? (Points : 4) 23 kilocalories 100 kilocalories 225 kilocalories 2,250 kilocalories.
Inventory account on the balance sheet : The cost of material that is not completely processed, would be found in which of the following inventory account on the Balance Sheet?
How many years will it take to exhaust her funds : Your aunt Ruth has $500,000 invested at 6.5%, and she plans to retire. She wants to withdraw $40,000 at the beginning of each year, starting immediately. How many years will it take to exhaust her funds?
Series of inter-connected operations : Which of the following System applies when standardized goodsare produced under the series of inter-connected operations?
What are some of the key factors considered in calculating : Financial Literacy. Over the past decade “Financial Literacy” has received increasing attention in all levels of schools. What does it mean to be financially literate?
What journal entry is needed to record payroll from week : What journal entry is needed torecord the payroll from the week prior (week ending 05/22, payroll computation happening on Tuesday 05/26).
Non cash assets and liabilities problem : Journalize the entries to record the liquidation out lined below, using Assets as the account title for the noncash assets and Liabilities as the account title for all creditors' claims.

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculation of loan payments

Chrysler is providing a choice of either 48 month 2.0% APR financing, OR $2000 cash back if you pay "cash" on a car buy. The stated price is $25,000.

  Compute the break even point in units

The Hartnett Company manufactures baseball bats with Pudge Rodriguez's autograph stamped on them. Each bat trades for $13 and has a variable expense of $8.

  Determine the total value of the stock

Pete Moran purchased a Dell Laptop Computer priced at $699. He put down 30 percent. Determine the amount of down payment;

  Find percent of the population registered to vote

If during an election there were 6372 listed voters & 3560 listed voters voted, what percentage of the listed voters actually cast a vote.

  Computing fv and pv of ordinary annuity

You will receive $2,000 at the end of next 12 years, supposing a 6% discount rate, what is the present value of cash flows?

  Influences stock buyback programs

Companies that are smart and conservative about their buybacks are not just creating value by maximizing float reduction, but they are also signaling to investors that they are likely well managed in other ways

  Computation of the current yield on the bond

Computation of the current yield on the bond and yield to maturity and A bond has 10 years until maturity, a coupon rate of 8%. and sells for $1,100.

  Raising fund for company

A company has raised $80 million from selling stocks. It wants to take part in a venture that requires $40 million this year, its annual after tax cash flow over the next seven years will be only $325,000.

  Advantages and disadvantages of mergers and acquisitions

What are the advantages and disadvantages of mergers and acquisitions to the economy and what are some ways the government is involved in them, and should the government be more or less involved?

  Bond pricing factors and direction of response

Write down the three factors that cause a bond's price to change and what is the predicted direction of change for the bond's price from changes in these factors?

  Change in nominal required rate of return

Describe why you would change your nominal required rate of return if you expected the rate of inflation to go from zero to 4%.

  Description of capital asset pricing model

In brief describe the capital asset pricing model (CAPM), its practical use, and its limitations.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd