Question

# Congratulations, you have saved well and are ready to begin your retirement. If you have $1,750,000.00 saved for your retirement and want it to last for 40 years, and will earn 10.8% compounded monthly: What is the amount of the monthly distribuion? 216.50 How much interest is earned in retirement? 58 likes 290 views ## Answer to a math question Congratulations, you have saved well and are ready to begin your retirement. If you have$1,750,000.00 saved for your retirement and want it to last for 40 years, and will earn 10.8% compounded monthly: What is the amount of the monthly distribuion? 216.50 How much interest is earned in retirement?

Jayne
4.4
Convert Annual interest to monthly interest rate Monthly interest rate= 10.8/12=0.9 Calculate the number of monthly payments Total number of monthly payments= 40*12= 480 Calculate Monthly Distribution PMT=P*r/$1-(1+r$^-n) where p= initial savings r= monthly interest rate n= number of payments PMT=1750000*0.009/$1-(1+0.009$^-480 PMT= 15600.92 Interest Earned = Total Amount Paid- Initial Savings Total Amount Paid= PMT*Number of Payments Total Amount Paid= 15600.92*480=7489767.51 Interest Earned = 7489767.51 - 1750000=5739767.51 Therefore, A) Amount of monthly distribution= $15600.92 B)Interest Earned=$5739767.51
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