# Finance

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

1. 👍 2
2. 👎 1
3. 👁 479
1. 5000(1.11^40) = P(1 - 1.11^-20)/.11

solve for P

1. 👍 1
2. 👎 4

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