Question
You have reached retirement age and the balance in your retirement account is $2,500,000. To be safe, you reinvest this money into an account which
You have reached retirement age and the balance in your retirement account is $2,500,000. To be safe, you reinvest this money into an account which pays a fixed return of 4% per year. You want to plan for this retirement savings to last 25 years.
What TVM formula should you use with the information above to calculate how much you could withdraw each year from your retirement fund?
| A. | Capital Recovery (CR) | |
| B. | Fundamental Capitalization Formula | |
| C. | Single Payment Present Value (SPPV) | |
| D. | Sinking Fund Deposit (SFD) |
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes, Melissa Hart
7th Edition
1265521972, 978-1265521974
