SOLUTION: You have $500,000 saved for retirement. Your account earns 10% interest. How much will you be able to pull out each month, if you want to be able to take withdrawals for 20 years?

Question 1153013: You have $500,000 saved for retirement. Your account earns 10% interest. How much will you be able to pull out each month, if you want to be able to take withdrawals for 20 years?

Answer by ankor@dixie-net.com(22740) (Show Source): You can put this solution on YOUR website!
You have $500,000 saved for retirement.
Your account earns 10% interest.
How much will you be able to pull out each month, if you want to be able to take withdrawals for 20 years?
:
The formula
A = , where
A = original amt
P = payment
r = interest rate in decimal form
n = no. of periods per year
t = no. of years
:
= 500000
:
= 500000
:
= 500000
:
= 500000
:
103.6246P = 500000
P =
P = $4825.11 taken each month for 20 yrs
RELATED QUESTIONS
You have $500,000 saved for retirement. Your account earns 7% interest. How much will you (answered by Boreal)

You have $500,000 saved for retirement. Your account earns 7% interest. How much will you (answered by Theo,mananth,ikleyn)

You have $300,000 saved for retirement. Your account earns 9% interest. How much will you (answered by Boreal,ikleyn)

You have $300,000 saved for retirement. Your account earns 4% Interest. How much will you (answered by ikleyn)

You have $400,000 saved for retirement. Your account earns 4% interest. How much will you (answered by Boreal)

You have $300,000 saved for retirement. Your account earns 6% interest. How much will you (answered by ikleyn)

You have $400,000 saved for retirement. Your account earns 7% interest. How much will... (answered by Theo)

You have $300,000 saved for retirement. Your account earns 8% interest. How much will you (answered by mananth,ikleyn)

You have $400,000 saved for retirement. Your account earns 8% interest. How much will you (answered by Theo)

You have $400,000 saved for retirement. Your account earns 4% interest. How much will you (answered by MathLover1)