You know you will have $500,000 in your account when you retire. You want to be able to take monthly withdrawals from the account for a total of 30 years. Your retirement account earns 8% interest. How much will you be able to withdraw each month?
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Expert's answer
2021-10-12T09:03:24-0400
P=krw(1−(1+kr)−ktwhere P = balance at the beginning of the periodw = regular withdrawal rater = annual interest ratek = no of compounding periods in one year∴500000=120.08w(1−(1+120.08)−360⟹w=$3667.03
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