What would be her corpus at the time of retirement? What is the fixed amount she can withdraw at the beginning of each year, until age 80, in case she wishes to exhaust the whole corpus?

Savitri is 30 years old. She saves Rs. 14,000/- p.a. (year end) in FD 8.75% p.a. compounded annually until she retires at age 58. Her life expectancy is 80 years.

What would be her corpus at the time of retirement? What is the fixed amount she can withdraw at the beginning of each year, until age 80, in case she wishes to exhaust the whole corpus? Inflation is 5%.
A . Rs. 13,68,748/-, Rs. 87,498/­
B . Rs. 14,96,855/-, Rs. 1,37,767/­
C . Rs. 15,15,481/-, Rs. 97,145/­
D . Rs. 14,24,894/-, Rs. 89,458/­

View Answer

Answer: C