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Maria wants to be able yo have yearly withdrawals of $25,000 from her retirement account for...

Maria wants to be able yo have yearly withdrawals of $25,000 from her retirement account for a period of 30 years starting a year after she turns 65. if she is able to earn yearly. rate return of 7% in her retirement account during the 30 years of her retirement, what must be the approxiamyr balance in her account on her 54th birthday?

a $750,000

b. $357,153

c. $310,226

d.$820,500

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Answer #1

PVOrdinary Annuity = C*[(1-(1+i/100)^(-n))/(i/100)]
C = Cash flow per period
i = interest rate
n = number of payments
PV= 25000*((1-(1+ 7/100)^-30)/(7/100))
PV = 310226.03
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