Suppose you have $1,500,000 when you retire and want to withdraw an equal amount each year for the next 30 years. - How much can you withdraw each year if you earn 7% - What if you can earn 9%? - What if the market failed and your earnings dropped to -.5%. How long would it take to drain your account if you did nothing about this loss pattern?
Suppose you have $1,500,000 when you retire and want to withdraw an equal amount each year for the next 30 years. - How much can you withdraw each year if you earn 7% - What if you can earn 9%? - What if the market failed and your earnings dropped to -.5%. How long would it take to drain your account if you did nothing about this loss pattern?
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 34P
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Suppose you have $1,500,000 when you retire and want to withdraw an equal amount each year for the next 30 years.
- How much can you withdraw each year if you earn 7%
- What if you can earn 9%?
- What if the market failed and your earnings dropped to -.5%. How long would it take to drain your account if you did nothing about this loss pattern?
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