Financial Calculation Help Needed -- Annunity
 

Good evening to all.

I would like to find a worksheet that would show the following;

Assume that I invested $50,000 on 11/1/05 in an account that was earning 4%
annually. I want to deplete the account in 25 Years by monthly withdrawls
(payments to me). I would want the payments to start the following year
11/1/06.

I have searched "Google" and can't find it, if you know where an existing
link is it would be appreciated.

Thanks in advance.

lomax

The function you need is PMT, as in:

=PMT(4%,25,-50000)

As the interest rate and term are in years, the result of $3200.60 is in years,
meaning you can withdraw $3200.60 per year.

This, or simply dividing by 12 to get the monthly amount, may be sufficient for
your purposes. If you *really* want a completely accurate calculation of the
monthly withdrawals, post back, because it gets much more involved (you have to
calculate the investment value for the year of accumulation and convert the
interest rate to an effective monthly rate).

--
Regards,
Fred


"Lomax" wrote in message
news:KoLTe.9783$dm.5954@lakeread03...
Good evening to all.

I would like to find a worksheet that would show the following;

Assume that I invested $50,000 on 11/1/05 in an account that was earning 4%
annually. I want to deplete the account in 25 Years by monthly withdrawls
(payments to me). I would want the payments to start the following year
11/1/06.

I have searched "Google" and can't find it, if you know where an existing
link is it would be appreciated.

Thanks in advance.

lomax