SOLUTION: You have $400,000 saved for retirement. Your account earns 5% interest. How much will you be able to pull out each quarter, if you want to be able to take withdrawals for 20 years?

Algebra ->  Finance -> SOLUTION: You have $400,000 saved for retirement. Your account earns 5% interest. How much will you be able to pull out each quarter, if you want to be able to take withdrawals for 20 years?      Log On


   

Question 1190393: You have $400,000 saved for retirement. Your account earns 5% interest. How much will you be able to pull out each quarter, if you want to be able to take withdrawals for 20 years? (Round down to the cent.)
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
your answer is that you will be able to pull out 7938.61 at the end of each quarter for 20 years.

i used the calculator at https://arachnoid.com/finance/index.html.

inputs were everything except pmt.
output was pmt.
number of time periods was 20 years * 4 quarter per year = 80 quarters.
interest rate was 5% per year / 4 = 1.25% per quarter.

here's a display of the results from using that calculator.



let me know is you have any questions.

theo