Question 1165313: If you have $400,000 in your retirement account, and you are currently making 8% interest on your account, how much can you withdraw from it a year without decreasing the amount in your account?
Answer by Theo(13342)   (Show Source):
You can put this solution on YOUR website! you have 400,000.
the interest rate is 8% per year,
8% * 400,000 = .08 * 400,000 = 32000
you should be able to withdraw 32000 at the end of each year without decreasing the amount in your account.
balance starts with 400,000
at the end of the first year, interest is 8% of 400,000 = 32,000
balance becomes 432,000
withdraw 32,000
balance becomes 400,000
at the end of the second year, interest is 8% of 400,000 = 32,000
balance becomes 432,000
withdraw 32,000
balance becomes 400,000
etc.....
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