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
+23246 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.
