Question

Find the periodic withdrawals for the annuity of $400,000 at 4%, paid out monthly for 16 years. (Assume end-of-period withdrawal and compounding at the same intervals as withdrawal. Round your answer to the nearest cent.)

Answer 1

The formula is A=P(1+i)^n
A is the answer
P is the money
i is the interest rate
n is the number of years.

Remember, "paid out monthly."

Answer 2

757.25