How much can you withdraw at the end of each month

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Reference no: EM131962390

Suppose that you just turned 25, and you decide to contribute $100 a month at the end of each month until age 60. Compute how much you will have, also compute how much you will have if you leave the money in the account until age 67. Assume that at age 67, you plan to withdraw equal payments for the next 30 years—how much can you withdraw at the end of each month? Finally, realizing that you may live past the ripe old age of 97 (your hoping that won’t be the case—at that point what do you have to live for except your morning constitutional and the one day every four years that you put on a suit, and vote with a bunch of other senile codgers), so you also compute what can be withdrawn on a monthly basis in perpetuity. Assume that you can get 12% APR with monthly compounding. Using Excel

Reference no: EM131962390

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