SOLUTION: You have $400,000 saved for retirement. Your account earns 7% interest. How much will you be able to pull out each month, if you want to be able to take withdrawals for 25 years?

Algebra ->  Finance -> SOLUTION: You have $400,000 saved for retirement. Your account earns 7% interest. How much will you be able to pull out each month, if you want to be able to take withdrawals for 25 years?      Log On


   

Question 1200366: You have $400,000 saved for retirement. Your account earns 7% interest. How much will you be able to pull out each month, if you want to be able to take withdrawals for 25 years?
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
you will be able to withdraw 2827.12 ad the end of each momnth or you will be able to withdraw 2810.72 at the end of each month.

here are the results from using the calculator at https://arachnoid.com/finance/





your inputs are:

pv = -400,000
fv = 0
np = 25 years * 12 months per year = 300 months
ir = 7% per year / 12 = .58333333333% permonth
payment is at the end of the year or at the beginning of the year.

the pv is negative because it's money that you put inot the account.
the payment is positive because it's money you withdraw from the account.

pv means present value
fv means future value
np means number of time periods
pmt means payment
ir means persent interrest.

interest is assumed to be compounded monthly if withdrawal is monthly.