Question
Suppose you inherited $100,000 and invested it at 7% per year. How large of a withdrawal could you make at the end of each of
Suppose you inherited $100,000 and invested it at 7% per year. How large of a withdrawal could you make at the end of each of the next 10 years and end up with zero?
a. How would your answer change if you made withdrawals at the beginning of each year? 0 b. If you had $100,000 that was invested at 7% and you wanted to withdraw $10,000 at the end of each year, how long would your funds last? c. How long would they last if you earned 0%? d. How long would they last if you earned the 7% but limited your withdrawals to $7,000 per year?
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