SOLUTION: Uncle Moneybags has $500,000 saved for retirement. He has an account earning 8% interest. If Uncle Moneybags wants to be able to make withdrawals for 25 years, how much can he with

Question 1153015: Uncle Moneybags has $500,000 saved for retirement. He has an account earning 8% interest. If Uncle Moneybags wants to be able to make withdrawals for 25 years, how much can he withdrawal each month? Round to the nearest cent.
Found 2 solutions by ankor@dixie-net.com, ikleyn:
Answer by ankor@dixie-net.com(22740) (Show Source): You can put this solution on YOUR website!
Uncle Moneybags has $500,000 saved for retirement.
He has an account earning 8% interest.
If Uncle Moneybags wants to be able to make withdrawals for 25 years, how much can he withdrawal each month? Round to the nearest cent.
:
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
:
129.5645P = 500000
P =
P = $3859.01 taken each month for 25 yrs
Answer by ikleyn(52898) (Show Source): You can put this solution on YOUR website!
.

Strictly speaking, this problem, as it is worded, printed, posted and presented, is DEFECTIVE, since
it does not say that the account is compound monthly.

RELATED QUESTIONS
Uncle Moneybags has $500,000 saved for retirement. He has an account earning 6% interest. (answered by CPhill)
Scarlett has $700,000 saved for retirement in an account earning 3.95% interest,... (answered by CPhill)
You have $500,000 saved for retirement. Your account earns 10% interest. How large can... (answered by Theo)
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)
Travis has a savings account that his parents opened for him. It pays 6% annual interest. (answered by addingup)
Please help solving bi,ii Carter expects to live for 30 years more after his retirement. (answered by Theo)
Carter expects to live for 30 years more after his retirement. He would like to withdraw... (answered by asinus)
You have $300,000 saved for retirement. Your account earns 8% interest. How much will you (answered by mananth,ikleyn)