Sharon has just retired, and has 500000 dollars in herretirement account. The account will earn interest at an annualrate of 10 percent, compounded monthly.

At the end of each month, Sharon will withdraw a fixed amount tocover her living expenses.

Part A: Sharon wants her savings to last exactly 20 years. Howmuch money can she withdraw each month?

(Give your answer in dollars, correct to the nearest cent.)

Part B: What is the maximum amount that Sharon can withdraw eachmonth if she wants her savings to last indefinitely?

Answer rating: 100% (QA)

Part A To determine how much money Sharon can withdraw each month so that her savings last exactly 20 years we need to find out how much interest she ... View the full answer