Question

refer to the web work second scenario where you start with $300,000 and take $1,250 out of savings per month. how long will the money last using the assumptions in the web work?

Answer 1

The $300,000 will last for 240 months, or 20 years, when $1,250 is withdrawn each month, assuming no interest is earned on the savings.

Step-by-step explanation:

To determine how long the initial $300,000 will last when taking out $1,250 each month, you would simply divide the total savings by the monthly withdrawal amount. This calculation assumes no interest accruing on the savings, which aligns with the question's instructions to ignore any associated assumptions from the referenced scenarios. So, the calculation would be $300,000 ÷ $1,250 per month.

$300,000 ÷ $1,250 = 240 months

This result indicates that the money will last for 240 months, which equates to 20 years, before the savings are completely depleted.