Question 1153013
 You have $500,000 saved for retirement.
 Your account earns 10% interest.
 How much will you be able to pull out each month, if you want to be able to take withdrawals for 20 years?
:
The formula
A = {{{P(1-(1+(r/n))^(-nt))/(r/n))}}}, where
A = original amt
P = payment
r = interest rate in decimal form
n = no. of periods per year
t = no. of years
:
{{{P(1-(1+(.1/12))^(-12*20))/(.1/12))}}} = 500000
:
{{{P(1-(1.0083333)^(-240))/(.1/12))}}} = 500000
:
{{{P(1-.1364616192)/(.1/12))}}} = 500000
:
{{{P(.863538488)/.00833333)}}} = 500000
:
103.6246P = 500000
P = {{{500000/.1036246}}}
P = $4825.11 taken each month for 20 yrs