In retirement, George earns an APR=2.50%. George begins to draw on his retirement savings at the end of each month (starting 1 month after he retires). (Use TVM formulas and show every step of your procedure):

a. If George expects to be alive 23 years after retirement, how much can he afford to withdraw per month if he retired with $1 million?

b. If George chooses to withdraw $9,000 per month, how many years would his retirement savings last considering he retired with $2 million?

c. George retires with $3 million, withdraws $12,000 per month, and expects to live for 23 years. After 23 years in retirement, he wants to donate what is left of his retirement savings. How much will be available to make the donation?

Answer rating: 100% (QA)

To calculate the withdrawal amount and the duration of retirement savings we can use the TVM Time Va... View the full answer