Question

You are retired and have a retirement account with a balance of $50,000. The balance earns you 2.0% interest every year, with monthly compounding. You withdraw $1000 at the beginning of each month for living expenses. Set up an excel spreadsheet that shows the balance in your retirement account at the end of each 6 month period for the next 5 years.

Answer 1

Month	Balance
6	44551.16
12	38963.44
18	33319.6
24	27619.09
30	21861.34
36	16045.77
42	10171.8
48	4238.841
54	-1753.69
60	-7806.4

Month	Balance	Withdrawal
0	50000
1	50083.33	1000
2	49165.14	1000
3	48245.41	1000
4	47324.16	1000
5	46401.36	1000
6	45477.03	1000
7	44551.16	1000
8	43623.75	1000
9	42694.79	1000
10	41764.28	1000
11	40832.22	1000
12	39898.6	1000
13	38963.44	1000
14	38026.71	1000
15	37088.42	1000
16	36148.57	1000
17	35207.15	1000
18	34264.16	1000
19	33319.6	1000
20	32373.47	1000
21	31425.75	1000
22	30476.46	1000
23	29525.59	1000
24	28573.13	1000
25	27619.09	1000
26	26663.45	1000
27	25706.23	1000
28	24747.4	1000
29	23786.98	1000
30	22824.96	1000
31	21861.34	1000
32	20896.11	1000
33	19929.27	1000
34	18960.81	1000
35	17990.75	1000
36	17019.07	1000
37	16045.77	1000
38	15070.84	1000
39	14094.29	1000
40	13116.12	1000
41	12136.31	1000
42	11154.87	1000
43	10171.8	1000
44	9187.082	1000
45	8200.727	1000
46	7212.728	1000
47	6223.083	1000
48	5231.788	1000
49	4238.841	1000
50	3244.239	1000
51	2247.979	1000
52	1250.059	1000
53	250.4761	1000
54	-750.773	1000
55	-1753.69	1000
56	-2758.28	1000
57	-3764.54	1000
58	-4772.49	1000
59	-5782.11	1000
60	-6793.41	1000
61	-7806.4	1000