Your Father Now Has $1,000,000 Invested in an Account That

Multiple Choice

Your father now has $1,000,000 invested in an account that pays 9.00%.He expects inflation to average 3%,and he wants to make annual constant dollar (real) beginning-of-year withdrawals over each of the next 20 years and end up with a zero balance after the 20th year.How large will his initial withdrawal (and thus constant dollar [real] withdrawals) be?

A) $69,636.40
B) $73,301.47
C) $77,159.45
D) $81,220.47