Zara has saved $500,000 in her retirement account, which earns an annual interest rate of 4.8% She plans to withdraw from the account monthly for 20 years. Approximately how much will Zara receive each month? Use the formula P=P⁢V⋅(r)/(1−(1+r)^−n)

For monthly withdrawals, use the monthly interest rate: 4.8% ÷ 12 = 0.004, with 20 × 12 = 240 monthly payments. Substituting into the formula gives P = 500,000(0.004) ÷ [1 − (1.004)⁻²⁴⁰] ≈ $3,244.79. So Zara will receive approximately $3,244.79 each month, choice B.

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