Question

Suppose you inherited $630,000 and invested it at 8.25% per year. How much could you withdraw at the end of each of the next 20 years?

Answer 1

Plug in calculator: Number of periods = 20, interest rate = 8.25%, present value = 630,000, future value = 0, end of period, solve for payment and get $65,365.26

Answer 2

I did this with Excel. If you withdraw $65,365.25 at the end of each year, you could live off the money for 20 years and still have 25 cents. The trick is finding that nice steady return.
630000 681975 65365.25 0.256401801
616609.75 667480.0544
602114.8044 651789.2757
586424.0257 634804.0079
569438.7579 616417.4554
551052.2054 596514.0123
531148.7623 574968.5352
509603.2852 551645.5562
486280.3062 526398.4315
461033.1815 499068.419
433703.169 469483.6804
404118.4304 437458.2009
372092.9509 402790.6194
337425.3694 365262.9624
299897.7124 324639.2736
259274.0236 280664.1306
215298.8806 233061.0382
167695.7882 181530.6908
116165.4408 125749.0896
60383.83963 65365.5064
0.256401801 0.277554949