Bria wants to make the best choice for her retirement plan. She has two options. Bria can withdraw money either monthly or

Question

Bria wants to make the best choice for her retirement plan. She has two options. Bria can withdraw money either monthly or quarterly. She needs compare both options and see if there is a difference in both cases.
a) Bria has $850,000 saved for retirement in an account earning 4.5% interest. She has two options either to compounded money monthly or quarterly. How much will she be able to withdraw each month if she wants to take withdrawals for 25 years? Round your answer to the nearest cent.
b) How much will she be able to withdraw quarterly if she wants to take withdrawals for 25 years? Round your answer to the nearest cent.
c) How much total money will she pull out of the account in both cases?
d) How much of that money is interest? Consider both cases.
e) Which option is more beneficial for Bria?

Kunduz · Accepted Answer

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