Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer using excel and explain 10) You have just retired with $1,000,000 in savings. This is the amount that you will be drawing down

please answer using excel and explain image text in transcribed
10) You have just retired with $1,000,000 in savings. This is the amount that you will be drawing down for the rest of your life. You expect to earn 6% and withdraw $70,000 per year. You also want to leave an inheritance of $100,000 to your favorite charity. How long can you rely on your savings? Assume that your first withdrawal will occur one year from today. Use Excel's =NPER(RATE,PMT,PV,[FV],[TYPE]) function. RATE is 6%, PMT is $70,000,PV is $1,000,000,FV is $100,000, and TYPE is 0 since payments are made at the end of the period. If the [type] argument is omitted, it takes on the default value of 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Finance

Authors: Laurence S. Seidman

1st Edition

0073375748, 978-0073375748

More Books

Students also viewed these Finance questions

Question

What are the challenges associated with tunneling in urban areas?

Answered: 1 week ago

Question

What are the main differences between rigid and flexible pavements?

Answered: 1 week ago

Question

What is the purpose of a retaining wall, and how is it designed?

Answered: 1 week ago

Question

How do you determine the load-bearing capacity of a soil?

Answered: 1 week ago

Question

what is Edward Lemieux effect / Anomeric effect ?

Answered: 1 week ago