Posted by granann on Monday, November 4, 2013 at 12:47am.
My uncle Samuel has $450,000 invested at 6.5%, and he plans to retire. He wants to withdraw $40,000 at the beginning of each year, starting immediately. How many years will it take to exhaust her funds, run the account down to zero?

Finance  Reiny, Monday, November 4, 2013 at 8:50am
450000=40000 + 40000(1  1.065^n)/.065
I am using
PV = Paym(1  (1+i)^n)/n
but ....
that formula assumes that payments are made at the end of the period, which explains the single 40,000
.66625 = 1  1.065^n
1.065^n = .33375
log both sides
n(log 1.065) = log .33375
n = 17.425
n = appr 17.4 years
(not many years of retirement with money, I have already been retired for 17 years and hope to have lots left. )
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