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if you have 2,250,000.00 saved for your retirement and want it to last for 40 years and will earn 12% compounded monthly. What is the amount of monthly distribution

 Mar 25, 2022
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You can use this formula:  P·(r/k) / (1 - (1 + r/k)-N·k)

where:  P = original amount = 2,250,000

             r = interest rate (as a decimal) = 0.12

             k = number of times per year money is taken out = 12

             N = number of years = 40

[notice the negative sign in the exponent]

 

I believe that the answer is $22,691.25; an unusually large number because the interest rate is quite large.

 Mar 25, 2022

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