Debbie Has $368,882 Accumulated in a 401K Plan

Multiple Choice

Debbie has $368,882 accumulated in a 401K plan. The fund is earning a low, but safe, 3% a year. The withdrawals will take place annually starting today. How soon will the fund be exhausted if Debbie withdraws $30,000 each year?

A) 15 years.
B) 16 years.
C) 14 years.
D) 12.3 years.$368,882 $30,000 = 12.29607 For PVAD of $1 factor of 12.29607 and i of 3%, n = 15