Answer:
She can spend $162,114.58 at the end of each period before she can exhaust the amount.
Explanation:
She will save up to $1,889,215.73 by saving $20,000 per year for 30 years, making the first deposit at the end of a year from today.
FV (Future Value) $1,889,215.73
PV (Present Value) $248,180.82
N (Number of Periods) 30.000
I/Y (Interest Rate) 7.000%
PMT (Periodic Payment) $20,000.00
Starting Investment $0.00
Total Principal $600,000.00
Total Interest $1,289,215.73
She can can retrieve $162,114.58 at the end of each period to reach the future value of $0.00.
FV (Future Value) $-0.00
PV (Present Value) $-0.00
N (Number of Periods) 25.000
I/Y (Interest Rate) 7.000%
PMT (Periodic Payment) $-162,114.58
Starting Investment $1,889,215.73
Total Principal $-2,163,648.74
Total Interest $2,163,648.74
