Question

You have 400000 saved for retirement. your account earns 7% interest. how much will you be able to pull out each month if you want withdraws for 25 years

Answer 1

$1,426.7

Explanation:

Let's say the unit currency is dollars

$400,000

7% of $400,000

= $28,000

400,000 + 28,000

= $428,000

For 25 years,

= 25 × 12

= 300

$428,000/300

= $1,426.7

~ $1,427