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An engineer is on the verge of retirement. She saved $ 100,000 which is deposited in...

An engineer is on the verge of retirement. She saved $ 100,000 which is
deposited in an account that pays 6% interest per year capitalized
quarterly. His plan is to withdraw $ 6,000 per quarter to satisfy his
needs. In how many years will she use up her savings?
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Answer #1

We are given the following information:

Quarterly payment PMT $            6,000.00
rate of interest r 6.00%
number of years n To be calculated
Quarterly Compounding frequency 4
Present value PV $ 100,000.00

We need to solve the following equation to arrive at the required n


So the number of years are 4.83 years of 19.32 quarters

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