SOLUTION: You want to be able to withdraw $35,000 each year for 30 years. Your account earns 9% interest. How much do you need in your account at the beginning?
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Question 1195620: You want to be able to withdraw $35,000 each year for 30 years. Your account earns 9% interest. How much do you need in your account at the beginning? Answer by Theo(13342) (Show Source):
You can put this solution on YOUR website! drawing at the end of each year is assumed.
using the calculator at https://arachnoid.com/finance/. i get the following.
pv (present value) = 359,577.89.
here are the results from using that calculator.
the present value is how much you need in the account at the beginning of the invstment period.
payments are assumed to be made at the end of each year.
if you are going to be withdrawng at the beginning of each year, then you will need to have pv (present value) = 391,939.90.
here are the results for the second analysis with withdrawals at the beginning of each year.
