Answer:
E. $2,688.77
Explanation:
We need to calculate the PMT of an ordinary annuity at 6%
[tex]PV \div \frac{1-(1+r)^{-time} }{rate} = C\\[/tex]
PV 402,000
time:
85 years - 62 years = 23 years of retirement
23 years x 12 months per year = 276 months
rate: 6% annual rate we must divide over 12 months to convert into monthly: 0.06/12 = 0.005
[tex]402000 \div \frac{1-(1+0.005)^{-276} }{0.005} = C\\[/tex]
C $ 2,688.766
She can withdraw 2,688.76 per month
