Math  /  Word Problems

QuestionYou have \$400,000 saved at 4\% interest. How much can you withdraw monthly for 20 years?

Studdy Solution
Calculate the monthly withdrawal amount.
Monthlywithdrawal=$400,000times0.00333(+0.00333)240=$,423.71Monthly\, withdrawal = \$400,000 \\times \frac{0.00333}{ - ( +0.00333)^{-240}} = \$,423.71You will be able to withdraw approximately $,423.71 each month.

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