document.write( "Question 1123821: If you have $400,000 in your retirement account, and you are currently making 8% interest on your account, how much can you withdraw from it a year without decreasing the amount in your account?
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Algebra.Com's Answer #740191 by Theo(13342) $\"\"$ $\"About$

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you should be able to withdraw the interest requirement on the remaining balance which will keep the remaining balance stable.\r
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\n" ); document.write( "\n" ); document.write( "if you have $400,000 in the account, and are currently earning 8% interest per year and you withdraw money at the end of each year, then you can withdraw .08 * 400,000 = 32,000 at the end of each year and keep the balance in the account the same.\r
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\n" ); document.write( "\n" ); document.write( "you start with 400,000
\n" ); document.write( "at the end of the first year, the account has earned .08 * 400,000 = 32,000.
\n" ); document.write( "the remaining balance at the end of the year is 432,000.
\n" ); document.write( "you withdraw 32,000.
\n" ); document.write( "the remaining balance becomes 400,000.
\n" ); document.write( "as long as you only withdraw the interest accrued at the end of each year, this could go on forever.\r
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