SOLUTION: 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?
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-> SOLUTION: 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?
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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? Answer by Boreal(15235) (Show Source):
You can put this solution on YOUR website! Principal=payout(1-(1+(r/k)))^(-Nk))/(r/k), where rate is 0.04, k is 12. and Nk is 25*12, or 300
400000=p(1+(.04/12))^(-300))/(.04/12)
=$2111.35
Round at end
Can simplify some by multiplying 400000 by (.04/12), which clears the denominator on the right.
Then divide by 1- (1+(.04/12)^-300).
