SOLUTION: You have $400,000 saved for retirement. Your account earns 4% 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 1204481: You have $400,000 saved for retirement. Your account earns 4% 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 MathLover1(20849) (Show Source): You can put this solution on YOUR website!

Recall that the formula for the present value of the ordinary annuity,

%==> (monthly)

(months)
then

you would be able to withdraw each month for years

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