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# Math help appreciated

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Please can you tell me the amount of the monthly drawdown over twenty years of €250,000 capital making 4% interest over 20 years. Many thanks.

Grasscutter  May 21, 2017
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#1
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4% annual interest on \$250,000 is \$10,000 per year.  833 bucks a month. But if you draw down the interest then your capital sum will depreciate over time with inflation.

If you don't touch the money at all for 20 years then it will be worth (1.04)^20     X   \$250,000 at the end of that period,which is \$547,780 assuming the interest is a consistent 4%.

Guest May 21, 2017
#2
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Please can you tell me the amount of the monthly drawdown over twenty years of €250,000 capital making 4% interest over 20 years. Many thanks.

Use the following formula to calculate your monthly drawdown payment:

PMT=PV. R.{[1 + R]^N/ [1 + R]^N - 1}

PMT =250,000 x 0.04/12{[1 + 0.04/12]^(20*12) / [1 + 0.04/12]^(20*12) - 1}

PMT =833.333....{[1.0033333]^240 / [1.0033333]^240 - 1]

PMT =833.333... x                            1.817940988........

PMT =1,514.95 - Euros - your monthly drawdown over a period of 20 years @ 4%.

P.S. I have taken your interest rate as 4% compounded monthly.

Guest May 21, 2017

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