You have $400,000 saved for retirement. Your account earns 8% interest. How much will you be able to pull out each month, if you want to be able to take withdrawals for 15 years?
You have $500,000 saved for retirement. Your account earns 8% interest. How much will you be able to pull out each month, if you want to be able to take withdrawals for 25 years?
If Bob sucks 8 weiners a day for 42 days and slows down to 3 weiners a day for 35 days, how many weiners did Bob suck in total?
To calculate how much you can withdraw each month from your retirement account, we need to use a formula called the present value of an annuity formula.
Here's how to calculate it step-by-step:
Step 1: Determine the interest rate per period
Since the interest rate is given as 8% annually, we need to convert it to a monthly rate. Divide the annual interest rate by 12:
Monthly interest rate = 8% / 12 = 0.08 / 12 ≈ 0.0067
Step 2: Determine the number of periods
The duration in years is given as 15 years. Multiply the number of years by 12 to get the number of months:
Number of periods = 15 years * 12 months/year = 180 months
Step 3: Calculate the monthly withdrawal amount
To calculate the monthly withdrawals, we use the present value of an annuity formula:
PV = PMT * (1 - (1 + r)^(-n)) / r
In this formula:
- PV is the present value (the amount in your retirement account, $400,000 in this case).
- PMT is the monthly withdrawal amount that we want to determine.
- r is the monthly interest rate (0.0067).
- n is the number of periods (180 months).
Now, let's substitute the values into the formula and solve for PMT:
400,000 = PMT * (1 - (1 + 0.0067)^(-180)) / 0.0067
To calculate this, you can use a financial calculator, spreadsheet software, or an online present value calculator.
By plugging in the values, the calculation reveals that the monthly withdrawal amount would be approximately $2,992.81.
So, if you want to be able to take withdrawals for 15 years, you can withdraw approximately $2,992.81 each month from your retirement account with $400,000 and an 8% interest rate.
This is the third time today you've posted this question. And you have not responded nor answered my question. You will probably not get any more help because you have ignored the help you have gotten. How rude!
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