If a Single Sum of $25,000 Is Invested at Age

Multiple Choice

If a single sum of $25,000 is invested at age 25 at 13% compounded annually, what amount will the investor be able to withdraw from the savings, at the end of every month for 20 years, beginning at age 65? At age 65 the investor will put his money into a safer investment that earns only 6% compounded monthly.

A) $13,831
B) $18,567
C) $23,782
D) $41,009
E) $7,185