Question
A woman, with her employer's matching program, contributes $500 at the end of each month to her retirement account, which earns 8% interest, compounded
A woman, with her employer's matching program, contributes $500 at the end of each month to her retirement account, which earns 8% interest, compounded monthly. When she retires after 45 years, she plans to make monthly withdrawals for 33 years. If her account earns 4% interest, compounded monthly, then when she retires, what is her maximum possible monthly withdrawal (without running out of money)? The maximum possible monthly withdrawal is approximately $11942.65 (Simplify your answer. Round to the nearest cent as needed.)
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim
6th Canadian edition
1259024962, 978-1259024962
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