Question
Abia is a retiree who needs at least $8,000 annually from her portfolio to pay for fixed expenses. She has set-up a ratio withdrawal plan
Abia is a retiree who needs at least $8,000 annually from her portfolio to pay for fixed expenses. She has set-up a ratio withdrawal plan at 5% of the year-end value. At the beginning of the year, her mutual fund portfolio was valued at $200,000. By year-end, it had appreciated 10%. How much income will she receive?
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