At the time they retire, a couple has $380,000 in an account that pays 8.4% compounded monthly. If the couple decides to withdraw equal monthly payments for 5 years, at the end of which the account will have a zero balance, how much should the couple withdraw each month? If the couple decides to withdraw $6,000 a month until the balance in the account is zero, how many withdrawals can the couple make?

At the time they retire, a couple has $380,000 in an account that pays 8.4% compounded monthly. If the couple decides to withdraw equal monthly payments for 5 years, at the end of which the account...

At the time they retire, a couple has $380,000 in an account that pays 8.4% compounded monthly.
1. If the couple decides to withdraw equal monthly payments for 5 years, at the end of which the account will have a zero balance, how much should the couple withdraw each month?
2. If the couple decides to withdraw $6,000 a month until the balance in the account is zero, how many withdrawals can the couple make?

Jun 03, 2022