Taylor has a retirement account that pays 4% per year compounded monthly. Every month for 20 years, Taylor deposits $444, with the first deposit at the end of month 1 The day the last deposit is made, the interest rate increases to 6% per year compounded monthly. During retirement, Taylor plans to make equal monthly withdrawals for 15 years, thus depleting the account. The first withdrawal occurs one month after the last deposit. How much can be withdrawn each month?

Answer rating: 100% (QA)

lets begin by calculating the future value FV after the 20year period of deposits at a 4 interest rate Phase 1 Deposits at 4 for 20 years Using the fu... View the full answer