Question

Laura retired from her job recently, and she has saved about $414,731.00 over the course of her career. She plans to withdraw $2,224.00 each month to pay for living expenses. After a certain amount of time, the balance in Laura's account is $381,371.00. How many months have passed since Laura retired

Answer 1

Approximately 140 months have passed since Laura retired.

Step-by-step explanation:

To find the number of months that have passed since Laura retired, we need to calculate the total number of months Laura's retirement savings can cover her living expenses, and then subtract that from the balance in her account.

First, we calculate the number of months Laura's retirement savings can cover her living expenses by dividing her total savings by the monthly withdrawal amount: $414,731.00 ÷ $2,224.00 = 186.41 months.

Then, we subtract the number of months from the balance in Laura's account to find the number of months that have passed since Laura retired: 186.41 - X = $381,371.00, where X is the number of months. So, X = 186.41 - $381,371.00 = 140.41.

Therefore, approximately 140 months have passed since Laura retired.