Question

If you save $800 per month for the next 40 years at 7.5%, how much will you be able to withdraw each year afterward for 25 years if you continue to earn 7.5%?

Answer 1

$ 217,015.29

Step-1:Future value of saving in 40 years
Future Value	=fv(rate,nper,pmt,pv)
	= $ 2,419,057.74
Where,
rate	=	7.5%/12	=	0.00625
nper	=	40*12	=	480
pmt			=	$       -800
pv			=	0
Step-2:Annual withndrawal for 25 years
Annual withdrawal	=pmt(rate,nper,pv,fv)
	= $    217,015.29
Where,
rate	=	7.50%
nper	=	25
pv	=	$ -2,419,057.74
fv	=	0