SOLUTION: YOU HAVE $1,000,000. GROWING AT 2.75% PER YEAR AND WITHDRAWING 4% PER YEAR, HOW MUCH MONEY WILL YOU HAVE IN 25 YEARS
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-> SOLUTION: YOU HAVE $1,000,000. GROWING AT 2.75% PER YEAR AND WITHDRAWING 4% PER YEAR, HOW MUCH MONEY WILL YOU HAVE IN 25 YEARS
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Question 1170218: YOU HAVE $1,000,000. GROWING AT 2.75% PER YEAR AND WITHDRAWING 4% PER YEAR, HOW MUCH MONEY WILL YOU HAVE IN 25 YEARS Answer by ikleyn(52781) (Show Source):
If we start with the amount X dollars at the beginning of the year, then at the end of the year
the amount will be X + 0.0275*X - 0.04*X = 0.9875X.
So, the amount after n years is the exponential function
Future value (n) = .
In 25 years
Future value (25) = = 730,176.09 dollars. ANSWER
