Reference no: EM132653432

Problem 1: Your father‘s employer was just acquired, and he was given a severance payment of $3 75,000, which he invested at a 7.5% annual rate. He now plans to retire, and he wants to withdraw $35,000 at the end of each year, starting at the end of this year. What is the maximum number of whole payments that can be withdrawn before the account is exhausted; i.e., before the account balance would become negative? (Hint: Round to the nearest whole number.)

a. 23

b. 24

c. 25

d. 26

e. 27