Question 1204481

Recall that the formula for the present value of the ordinary annuity,
 
{{{P=(x/i)(1-(1+i)^(-nk))}}}

if

{{{P=400000}}}

{{{i/12=4/12}}}%={{{0.04/12}}}=> (monthly)

{{{n=20}}}

{{{k=12}}} (months)

then

{{{400000=(x/(0.04/12))(1-(1+0.04/12)^(-20*12))}}}




{{{400000=165.022x}}}


{{{x=400000/165.022 }}}


{{{x=2423.92}}}


you would be able to withdraw {{{2423.92}}} each month for {{{20 }}}years