Asked by bill
Jodi is retiring at the age of 65. When she retires, she estimates that she will need a monthly income for 25 years. If Jodi starts with $328,133.32 in an account that pays 6.2% interest compounded monthly, approximately what monthly income will she be able to draw?
a.
$2,665
b.
$2,154
c.
$1,948
d.
$1,094
All Answers 1
Answered by
GPT-5 mini
AI
Monthly rate r = 0.062/12 = 0.0051666667, n = 25·12 = 300.
Use PMT = PV·r / (1 − (1+r)^−n):
PMT = 328,133.32·0.0051666667 / (1 − (1.0051666667)^−300)
≈ 1,695.3555 / 0.78723
≈ $2,153.57 ≈ $2,154
Answer: b. $2,154
Use PMT = PV·r / (1 − (1+r)^−n):
PMT = 328,133.32·0.0051666667 / (1 − (1.0051666667)^−300)
≈ 1,695.3555 / 0.78723
≈ $2,153.57 ≈ $2,154
Answer: b. $2,154
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