In: Finance
You have just retired with savings of $1.5 million. If you expect to live for 30 years and to earn 8% a year on your savings, how much can you withdraw each year? Assume that you withdraw the money at the start of each year.
$112,148.50 A
$120,000.00 B
$123,371.44 C
$133,241.15 D
Amount of Savings today =1500000
Rate =8%
Number of years =30
Amount to Withdraw at start of each year
=PV/(((1+r)*(1-(1+r)^-n)/r))=1500000/(((1+8%)*(1-(1+8%)^-30)/8%)
=123371.44 (Option
c is correct option)