Question

refer to the web work first scenario where you start with $300,000 and take $2,500 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 10 years if $2,500 is taken out every month, not considering any interest that could be earned on the savings.

Step-by-step explanation:

The question asks how long $300,000 will last if you take out $2,500 per month from your savings. To calculate the total duration, we divide the total savings by the monthly expenditure. So, $300,000 divided by $2,500 per month equals 120 months or 10 years. Therefore, the money will last for 10 years if you withdraw $2,500 every month without accounting for any potential interest earned on the savings.

It's important to note that in a real-world scenario, the interest earned on the remaining balance could extend the duration of the savings. However, since the question does not provide an interest rate or instruct to consider it, we omit it from our calculation.