If, upon retirement in 30 years, Chris plans to invest the
$200,000 in a fund that earns 10 percent, what is the maximum
annual withdrawal he can make over the following 25 years?Calculate
your answer based on the financial calculator.
| Ans. | 10 % at 25 years | 0.0923 | ||||||||
| Maximum Annual withdrawal | 200000 * 0.0923 | |||||||||
| 18460 | ||||||||||
| Present value factor @ 10% | ||||||||||
| Years | P.V. | |||||||||
| 1 | 0.90909 | |||||||||
| 2 | 0.82645 | |||||||||
| 3 | 0.75131 | |||||||||
| 4 | 0.68301 | |||||||||
| 5 | 0.62092 | |||||||||
| 6 | 0.56447 | |||||||||
| 7 | 0.51316 | |||||||||
| 8 | 0.46651 | |||||||||
| 9 | 0.4241 | |||||||||
| 10 | 0.38554 | |||||||||
| 11 | 0.35049 | |||||||||
| 12 | 0.31863 | |||||||||
| 13 | 0.28966 | |||||||||
| 14 | 0.26333 | |||||||||
| 15 | 0.23939 | |||||||||
| 16 | 0.21763 | |||||||||
| 17 | 0.19784 | |||||||||
| 18 | 0.17986 | |||||||||
| 19 | 0.16351 | |||||||||
| 20 | 0.14864 | |||||||||
| 21 | 0.13513 | |||||||||
| 22 | 0.12285 | |||||||||
| 23 | 0.11168 | |||||||||
| 24 | 0.10153 | |||||||||
| 25 | 0.0923 | |||||||||
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