SOLUTION: You have $300,000 saved for retirement. Your account earns 10% interest. How much will you be able to pull out each month, if you want to be able to take withdrawals for 25 years?

Use the general formula  A = .


Here A is the initial amount at the account; W is the monthly withdrawn value; r is the nominal monthly percentage r = 0.1/12; 
presented as a decimal;  p = 1 + r  and n is the number of withdrawing periods (months, in this case).


In this problem,  W is the unknown;  the monthly rate is  r = 0.10/12 = 0.00833,  p = 1 + 0.00833 = 1.00833, the number of payment 
periods (= the number of months) is n = 25*12 = 300.  So


          300000 = .


The factor   is equal to 110;  therefore


           W =  = 2727 dollars  (rounded to the closest lesser dollar).


Thus you will be able to withdraw about $2727 every month during 25 years..