your uncle has $300,000 invested at 7.5%, and he now wants to retire. he wants to withdraw $35,000 at the end of each year, beginning at the end of this year. he also wants to have $25,000 left to give you when he ceases to withdraw funds from the account. what is the maximum number of $35,000 withdrawals that he can make and still have at least $25,000 left in the account? (hint: if your solution for n is not an integer, round down to the nearest whole number.)

An annuity is a contract that provides a beneficiary (annuity) with regular payments over a period of one year or more. You can conclude your pension agreement yourself or with the help of your employer. An annuity is an insurance contract that makes a lump sum or series of payments to an insurance company, and the insurance company makes periodic payments now or at a later date. Annuities are financial instruments that provide a guaranteed income stream, typically used by retirees.

There are four basic annuity types to suit your needs: Immediate fixed, immediate variable, deferred fixed and deferred variable annuities.

We have PV of annuity as $300,000,

Rate = 7.5%

Annual withdrawl

= PMT=35000,

Duration of annuity

= nper = ??

FV of Annuity = 25000

So we use nper function in excel.

Duration of annuity = nper

=nper (Rate,PMT,PV,FV)

= nper (7.5%,-35000,300000,25000)

ie nper = 14.96% ≈ 15

To know more annuity, visit:

https://brainly.com/question/29488566

#SPJ4