Question
Your 70-year-old grandmother expects to live for another 20 years. She currently has $1,000,000 of savings, which is invested to earn a guaranteed 6.25% rate
Your 70-year-old grandmother expects to live for another 20 years. She currently has $1,000,000 of savings, which is invested to earn a guaranteed 6.25% rate of return. IGNORING the effects of inflation, how much can she withdraw (to the nearest dollar) at the beginning of each year and keep the withdrawals constant in nominal terms until the balance drops to zero on the 20th year?
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Personal Finance An Integrated Planning Approach
Authors: Ralph R Frasca
8th edition
136063039, 978-0136063032
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