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Your friend Bob just retired after running a donut shop for 40 years. He has saved $5 million in his retirement accounts. Now he has his money in bond funds that have a 5% annual rate of return. How much will Bob be able to withdraw at the beginning of each month for the next 30 years. Assume he will have $0 left after year 30.

Answer :

ammary456

Answer:

$26,730

Explanation:

The explanation for this question is given in the attachment below.

${teks-lihat-gambar} ammary456

The Income that he will be able to withdraw is $26730.

How to calculate the income?

The following information are given:

Amount = $5 million

Interest rate = 5%

Monthly rate = 0.417%

Period = 30 years.

Let monthly withdrawal be x.

5,000,000 = x + (x/1.00417) + (x/1.00417^358) + (x/1.00417)^359

= $26730

In conclusion, the correct option is $26730.

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