You have $400,000 saved for retirement. Your account earns 9% interest. How much will you be able to pull out each month, if you want to be able to take withdrawals for 15 years?

You want to be able to withdraw $40,000 each year for 20 years. Your account earns 8% interest.
a) How much do you need in your account at the beginning?
b) How much total money will you pull out of the account?
c) How much of that money is interest?

A state lotto has a prize that pays $600 each week for 30 years.
Find the total value of the prize: $
If the state can earn 3% interest on investments, how much money will they need to put into an account now to cover the weekly prize payments?
Reminder: There are 52 weeks in a year.

Answer rating: 100% (QA)

a We may use the following calculation to get the maximum monthly withdrawal from an account with a balance of 400000 yielding 9 interest PMT P r 1 1 ... View the full answer