Question

You have $400,000 saved for retirement your account weren’t 9% interest how much will you be able to fill out each month if you want to be able to take withdrawals for 20 years?

Answer 1

To calculate how much you will be able to withdraw each month for retirement, you can use the formula for the future value of an ordinary annuity.

Step-by-step explanation:

To calculate how much you will be able to withdraw each month for retirement, you can use the formula for the future value of an ordinary annuity.

The formula is:

A = PMT((1+r)^n-1)/r

Where:
A = future value of the annuity
PMT = periodic payment amount
r = interest rate per period
n = number of periods

In this case, the future value (A) is the amount of money you have saved for retirement ($400,000), the interest rate per period (r) is 9% (converted to fraction form, r = 0.09), and the number of periods (n) is 20 years.

Plugging in the values, the formula becomes:

400,000 = PMT((1+0.09)^20-1)/0.09

Simplifying this equation will give you the monthly payment amount (PMT) you need to withdraw each month to last for 20 years of retirement.