Dear Financial Adviser,

My spouse and I are each $62$ and hope to retire in three years. After retirement we

will receive $$7,600$ per month after taxes from our employers' pension plans and

$$1,600$ per month after taxes from Social Security. Unfortunately, our monthly

living expenses are $$15,100.$ Our social obligations preclude further economies.

We have $$1,010,000$ invested in a high$-$grade, tax$-$free municipal$-$bond mutual

fund. The return on the fund is $4\mathrm{.}0\%$ per year. We plan to make andual

withdrawals from the mutual fund to cover the difference between our pension and

Social Security income and our living expenses.

Sincerely,

Luxury Challenged

Marblehead, MA

You can assume that the withdrawals $($one in the beginning of every year$)$ will sit

in a checking account until spent. The couple will use the account to cover the

monthly shortfalls.

How many years before Luxury Challenged runs out of money?