Explore BrainMass
Share

# Annual withdrawals

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Your father now has \$1,000,000 invested in an account that pays 9.00%. He expects inflation to average 3%, and he wants to make annual constant dollar (real) beginning-of-year withdrawals over each of the next 20 years and end up with a zero balance after the 20th year.

How large will his initial withdrawal (and thus constant dollar (real) withdrawals) be?

© BrainMass Inc. brainmass.com October 17, 2018, 1:17 am ad1c9bdddf
https://brainmass.com/business/accounting/your-father-invested-account-pays-331106

#### Solution Summary

The solution explains how to calculate the amount of annual withdrawals given the initial investment

\$2.19
Similar Posting

## Retirement savings, maximum annual withdrawal

You plan to have \$750,000 in savings and investments when you retire at age 60. Assuming that you earn an average of 9 percent on this portfolio, what is the maximum annual withdrawal you can make over a 25 year period of retirement?

View Full Posting Details