Question 45 2 pts Pete Peterson is 66 years old and has just attended his retire

Question

Question 45 2 pts Pete Peterson is 66 years old and has just attended his retirement party. He has amassed $1.36 million in retirement savings. He and his spouse have figured out that during retirement they need to withdraw $100,000 at the end of each year from their retirement savings to maintain the standard of living that they would like to have. If they can earn 4% interest on the unspent balance in their retirement account. how many years will it be before their retirement savings are exhausted O 14 O 17 O 20 O 23 O 26

Explanation / Answer

Solution 31 :-

As per the equation given in question

100000*PVAF(4%,n) = 1360000

therefore PVAF(4%.n) = 1360000/100000 = 13.6

Therefore with the help of PVAF table we will get n = 20

Therefore the correct answer is (c)

Answer 32 :- (d) Portability

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