document.write( "Question 1181739: 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 25 years? \n" ); document.write( "

Algebra.Com's Answer #811709 by Boreal(15235) $\"\"$ $\"About$

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Principal=payout(1-(1+(r/k)))^(-Nk))/(r/k), where rate is 0.04, k is 12. and Nk is 25*12, or 300
\n" ); document.write( "400000=p(1+(.04/12))^(-300))/(.04/12)
\n" ); document.write( "=$2111.35
\n" ); document.write( "Round at end
\n" ); document.write( "Can simplify some by multiplying 400000 by (.04/12), which clears the denominator on the right.
\n" ); document.write( "Then divide by 1- (1+(.04/12)^-300).
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