Your uncle has $375,000 and wants to retire. he expects to live for another 25 years, and he also expects to earn 7.5% on his invested funds. how much could he withdraw at the beginning of each of the next 25 years and end up with zero in the account?

$28,243.21

$29,729.70

$31,294.42

$32,859.14

$34,502.10

$31,294.42

Explanation:

In this question, we use the PMT formula which is shown in the spreadsheet.  

The NPER represents the time period.  

Given that,  

Present value = $375,000

Assuming figure - Future value or Face value = $0

NPER = 25 years

Rate = 7.5%

The formula is shown below:  

= -PMT(Rate,NPER, PV,FV,Type)  

So, after solving this,  the answer would be $31,294.42

answer; is usually (less than) the socially optimal level of consumption;