Your parents have an investment portfolio of $400,000, and they wish to take out cash flows of $50,000 per year as an ordinary annuity
How long will their portfolio last if the portfolio is invested at an annual rate of 4.50%? Use a calculator to determine your answer.
A) 8.00 years
B) 9.10 years
C) 9.60 years
D) 10.14 years
Answer: D
Explanation: D) MODE = END
INPUT ? 4.50 -400,000 50,000 0
KEY N I/Y PV PMT FV
CPT 10.14
Business
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