College math help

Question

You have 500,000 saved for retirement. Your account earns 5% interest. How much will you be able to pull out each month, if you want to be able to take withdrawals for 15 years? Round to the nearest dollar.

Answer 1

Use the Future Value of an Investment Formula from a spreadsheet program.

= FV(Rate,Periods,Withdrawal,PV)

Assuming a 5% return compounded monthly, you can withdraw

≈ 3,937 per month for 15 years before your account is depleted.