SOLUTION: You have $500,000 saved for retirement. Your account earns 3% interest. How much will you be able to pull out each month, if you want to be able to take withdrawals for 25 years?

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Question 1166599: You have $500,000 saved for retirement. Your account earns 3% interest.
How much will you be able to pull out each month, if you want to be able to take withdrawals for 25 years?
Round your answer to the nearest dollar.
$____
Answer by ikleyn(53339)   (Show Source):
You can put this solution on YOUR website!
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You have $500,000 saved for retirement. Your account earns 3% interest.
How much will you be able to pull out each month, if you want to be able to take withdrawals for 25 years?
Round your answer to the nearest dollar.
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            This problem in the post is posed INCORRECTLY and UNPROFESSIONALLY.

To be correct, the problem should describe

        (a)   how often the account is compounded,

    and

        (b)   when the withdrawals are made - at the beginning or at the end of each month.