Question

Lamont retired at age 55 and rolls over $300500

Answer 1

If Lamont withdraws $2,750 monthly, he will be 66 years old (after 134.326 months) when the money runs out.

How is the number of monthly withdrawals calculated?

We can calculate the number of monthly withdrawals using an online finance calculator.

It determines the number of periods it will take for the investment to be exhausted, given an interest rate of 3.8%.

I/Y (Interest per year) = 3.8%

PV (Present Value) = $300,500

PMT (Periodic Payment) = $-2750

FV (Future Value) = $0

Results:

N = 134.326 months

Years = 11 years (134.326/12)

Age at FV = $0 is 66 years (55 + 11)

Sum of all periodic payments = $-369,397.09 (134.326 x $-2,750)

Total Interest = $68,897.09

Thus, making a monthly withdrawal of $2,750 will exhaust the investment when Lamont turns 66.

Learn more about periodic withdrawals and payments at brainly.com/question/13031679

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