Answer:
285 Months
Explanation:
n = 30 years × 12 = 360
percent rate = 5.0 % divided by 12 = 0.417.
Now recalling the statement of time value for money,
We have future value = present value × ( 1 + rate) ∧ n
future value = 1, 070,000 × ( 1 + 0.417 ) ∧ 360
future value = 3.33065667 E 60
At age 65, the value 3.33065667 E 60 will be the present monthly withdrawal at $28,500.
present value of ordinary annuity, = annuity ( 1 - (1 + r) ∧ -n ÷ r
= 3.33065667 E 60 = 28500 (1 - ( 1 + 0.417) ∧ - n ÷ 0.417
= 3.33065667 E 60 ÷ 28500 = (1 - ( 1 + 0.417) ∧ - n ÷ 0.417
1.168651462 E 56 = (1 - ( 1 + 0.417) ∧ - n ÷ 0.417
we now introduce logs to determine the value of n
Solving further, we discovered that n= 285.
Therefore, the number of months it will last one he start to withdraw the money is 285 month
