Mrs. A has saved $1,200,000 and is about to retire. If she can earn 3.75% annually...
Mrs. A has saved $1,200,000 and is about to retire. If she can earn 3.75% annually and withdraw $70,000 at the beginning of each year, her fund can support "____" years of retirement life
Homework Answers
Hello Sir/ Mam
YOUR REQUIRED ANSWER IS n = 26.256
Total savings of Mrs. A = $1,200,000
annual interest rate = 3.75%
Annual withdrawls = $70,000
Using excel function, "=NPER(3.75%,-70000,1200000,0,1)", we get Number of periods = 26.256
You can round it according to your needs.
I hope this solves your doubt.
Feel free to comment if you still have any query or need something else. I'll help asap.
Do give a thumbs up if you find this helpful.
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