High School

A widow currently has a $99,000 investment that yields 5 percent annually. Can she withdraw $24,000 for the next five years? Use Appendix D to answer the question. Round your answer to the nearest dollar. The maximum amount that can be withdrawn is $ 29000 so she cannot withdraw $24,000 for the next five years. Would your answer be different if the yield were 7 percent? Use Appendix D to answer the question. Round your answer to the nearest dollar. If the yield is 7 percent the maximum amount that can be withdrawn is $ 31500 so she cannot withdraw $24,000 for the next five years

Answer :

The widow cannot withdraw $24,000 for the next five years because it exceeds the maximum allowable withdrawal amount.

Based on the information provided in appendix d, the maximum amount that can be withdrawn from a $99,000 investment yielding 5% annually is $29,000. if the yield were 7%, the maximum withdrawal amount from a $99,000 investment would be $31,500. in this case as well, the widow would not be able to withdraw $24,000 for the next five years since it exceeds the maximum allowable withdrawal amount.

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