Average annual rate of return on her retirement portfolio

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Reference no: EM131604479

Michelle Gunterhas just retired today and has $1,000,000 invested for retirement. Michelle assumes that her average annual rate of return on her retirement portfolio in the future will be 7.5%. She would like to know what fixed amount she can take out of her retirement each year and still have $300,000 left in the account 20 years from now. Each of the 20 withdrawals from the account will occur at the beginning of each year. That means that Michelle will be making her first withdrawal immediately.

Reference no: EM131604479

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