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Molly just received a $5,000 inheritance. She wants to open an IRA for retirement, 40 years from today. If she can earn 11% per year in her IRA, how much will she be able to take out annually for 20 years in retirement?

A) $24,182 B) $35,041 C) $16,250 D) $40,812

2 answers

5000(1.11^40) = P(1 - 1.11^-20)/.11

solve for P

40814

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