Walter decides he wants to start saving for retirement. On his 37th birthday he deposits $141000 in an account with an interest rate of j1=7%. On his 65th birthday he starts withdrawing money annually from the account for the next 12 years. What size are the withdrawals? *Do not round intermediate steps*
$ 118,031.38
| Step-1:Value of money on his 65th birthday | ||||||||
| Future Value of money | =fv(rate,nper,pmt,pv) | Where, | ||||||
| = $ 9,37,486.21 | rate | = | 7% | |||||
| nper | = | 65-37 | = | 28 | ||||
| pmt | = | 0 | ||||||
| pv | = | $ -1,41,000 | ||||||
| Step-2:Calculation of annual withdrawal | ||||||||
| Annual Withdrawal | =pmt(rate,nper,pv,fv) | Where, | ||||||
| = $ 1,18,031.38 | rate | = | 7% | |||||
| nper | = | 12 | ||||||
| pv | = | $ -9,37,486.21 | ||||||
| fv | = | 0 |
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