Assume that today is the first day of the month and that it is also your first day of retirement. You have saved for retirement over the years and have accumulated $462,000 in an investment account from which you plan to make monthly withdrawals during your retirement starting at the end of this month. Assuming you can earn annual returns of 7.9% in your investment account during your retirement years, how much money can you withdraw every month to make sure that your current balance will last you exactly 21 years?
Assume that today is the first day of the month and that it is also your first day of retirement. You have saved for retirement over the years and have accumulated $462,000 in an investment account from which you plan to make monthly withdrawals during your retirement starting at the end of this month. Assuming you can earn annual returns of 7.9% in your investment account during your retirement years, how much money can you withdraw every month to make sure that your current balance will last you exactly 21 years?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Assume that today is the first day of the month and that it is also your first day of retirement. You have saved for retirement over the years and have accumulated $462,000 in an investment account from which you plan to make monthly withdrawals during your retirement starting at the end of this month. Assuming you can earn annual returns of 7.9% in your investment account during your retirement years, how much money can you withdraw every month to make sure that your current balance will last you exactly 21 years?
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