Question

Your father's employer was just acquired, and he was given a severance payment of $397,500, which he invested at a 7.5% annual rate. He now plans to retire, and he wants to withdraw $35,000 at the end of each year, starting at the end of this year. How many years will it take to exhaust his funds, i.e., run the account down to zero?

Answer 1

Number of period		=	=nper(rate,pmt,-pv,fv)
		=	26.40	Years
So, it will take approximate 26 years to run the account down to zero.
Where,
	nper	Number of period				?
	pmt	periodical payment				$           35,000
	pv	Present Value				$       3,97,500
	fv	Cash flow at the end of period				0
	rate	Annual rate of interest				7.50%