Question 1198148: You have $300,000 saved for retirement. Your account earns 8% interest. How much will you be able to pull out each month, if you want to be able to take withdrawals for 15 years?
Found 2 solutions by mananth, ikleyn:
Answer by mananth(16946)   (Show Source):
You can put this solution on YOUR website! You have $300,000 saved for retirement. Your account earns 8% interest. How much will you be able to pull out each month, if you want to be able to take withdrawals for 15 years?
Where:
PMT = Payment per period
PV = Present value
r = Interest rate per period
n = Total number of periods
Here
PV = $300,000
r = 8% / 12 = 0.006666667 per month
n = 15 years x 12 = 180 months
PMT = (300,000 *0.006666667) / ((1 - (1 + 0.006666667)))^(-180) = $2,786.53
$2,786.53 per month can be withdrawn for 15 years
Answer by ikleyn(52776)  (Show Source):
You can put this solution on YOUR website! .
You have $300,000 saved for retirement. Your account earns 8% interest. How much will you be able to pull out each month,
if you want to be able to take withdrawals for 15 years?
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The calculation formula in the post by @mananth
PMT = (300,000 *0.006666667) / ((1 - (1 + 0.006666667)))^(-180)
is  .
His reported value/answer of @2,786.53 is , too.
The correct formula is
PMT = (300000*0.006666667)/(1 - (1 + 0.006666667)^(-180))
The correct ANSWER is $2866.96.
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Ignore the post by @mananth, for the safety of your mind.
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