It is the day you are retiring. You have saved 1,000,000. Youlive for 30 years a

Question

It is the day you are retiring. You have saved 1,000,000. Youlive for 30 years at 8% interest for period. How mych can youwithdraw each year and have nothing left at the end of 30years. A) 80,000 B)88,827 C)8,827D)10,062,657
My formula does not work. What is the formula? It is the day you are retiring. You have saved 1,000,000. Youlive for 30 years at 8% interest for period. How mych can youwithdraw each year and have nothing left at the end of 30years. A) 80,000 B)88,827 C)8,827D)10,062,657
My formula does not work. What is the formula?

Explanation / Answer

w = [ P(1 + r)Yr ] / [ (1 +r)Y - 1 ]     : w=[1000000(1+.08)29(.08)]/[(1+.08)30-1] : w=1000000(10.0626569)(.08)/[(10.0626569)-1] :
w=805012.48/10.0626569=88827

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