Question: compounded You have $1,000,000 saved for retirement in an investment account which pays 4.75% monthly A) How much money can you take out each month if you want the account to last for 35 years? B) A) How much money can you take out each month if you want the account to last for 25 years?

Question: compounded You have $1,000,000 saved for retirement in an investment account which pays 4.75% monthly A) How much money can you take out each month if you want the account to last for 35 years? B) A) How much money can you take out each month if you want the account to last for 25 years?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 12PROB

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Question:
You have $1,000,000 saved for retirement in
an investment account which pays 4.75%
compounded monthly A) How much money
can you take out each month if you want the
account to last for 35 years? B) A) How much
money can you take out each month if you
want the account to last for 25 years?

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