If you make 10monthly withdrawals instead of 4 month withdrawals, how much can you withdraw each month?
Inc. Expenses
SEPTEMBER 1,250. -1,250
OCT. 3,200. -2,550
NOV. 4,250. -3,570
DEC 2,530. -2,840
To find out how much you can withdraw each month if you make 10 monthly withdrawals instead of 4, you need to calculate the total amount remaining after subtracting the expenses for each month. Let's break it down step by step:
1. Calculate the total expenses for each month by subtracting the amount spent from the income:
- September: Expenses = $1,250 - $1,250 = $0
- October: Expenses = $3,200 - $2,550 = $650
- November: Expenses = $4,250 - $3,570 = $680
- December: Expenses = $2,530 - $2,840 = -$310
2. Calculate the remaining amount after subtracting the expenses for each month by subtracting the expenses from the income:
- September: Remaining = $1,250 - $0 = $1,250
- October: Remaining = $3,200 - $650 = $2,550
- November: Remaining = $4,250 - $680 = $3,570
- December: Remaining = $2,530 - (-$310) = $2,840 + $310 = $3,150
3. Calculate the average remaining amount per month by dividing the total remaining amount by the number of months (10):
- Average Remaining = ($1,250 + $2,550 + $3,570 + $3,150) / 10 = $10,520 / 10 = $1,052
Therefore, if you make 10 monthly withdrawals instead of 4, you can withdraw approximately $1,052 per month.