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You have $182,000 in your retirement account that is earning 3% per year. How many dollars...

You have $182,000 in your retirement account that is earning 3% per year. How many dollars in withdrawals per year would reduce this nest egg to zero in 20 years?

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Answer #1

Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate

182,000=Annuity[1-(1.03)^-20]/0.03

182,000=Annuity*14.8774749

Annuity=182,000/14.8774749

=$12233.26(Approx).

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