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Yesterday you won $340,000 and decided to invest your money at 9.15% per year (compounded annually)....

Yesterday you won $340,000 and decided to invest your money at 9.15% per year (compounded annually). How much money could you withdraw at the end of the next 14 years?

A.

$39,654.39

B.

$43,685.53

C.

$44,036.48

D.

$46,556.22

E.

$44,001.93

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Answer #1
Withdaw in each year (P) PVA÷([1-(1÷(1+r)^n)]÷r)
Here,
A Interest rate per annum 9.15%
B Number of years                                                                   14
C Number of compoundings per per annum                                                                     1
A÷C Interest rate per period ( r) 9.15%
B×C Number of periods (n) 14
Present value (PVA) $                                               340,000.00
Withdaw in each year (P) $           44,036.48
340000÷((1-(1÷(1+9.15%)^14))÷9.15%)
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