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I have $400,000 in the bank now. I plan to withdraw $20,000 at the end of this year. Each subsequent end of year withdrawal will
- I have $400,000 in the bank now. I plan to withdraw $20,000 at the end of this year. Each subsequent end of year withdrawal will increase by 8%. If I earn 10% per year on my investments in the first 3 years, then 5% per year in the next 2 years, and 4% per year in the following 3 years,
- Determine how much money I will have at the end of 8 years.
- Determine the initial withdrawal amount at the end of this year that will leave me with no money at the end of 8 years using either Solver or Goal Seek.
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