An endowment fund is set up with a donation of $110,000. If it earns 6.5% compounded...

An endowment fund is set up with a donation of $110,000. If it earns 6.5% compounded monthly, for how long will it sustain end-of-month withdrawals of $1,400? (Include the final smaller withdrawal.) (Do not round intermediate calculations and round up the number of payments, n, to the next whole number.)

Endowment is for year(s) and month(s).

Expert Solution

Using financial calculator
I/Y=6.5%/12
PV=-110000
PMT=1400
FV=0
CPT N=102.6316

103 withdrawals

8 years 7 months

jeff jeffy answered 2 years ago

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