Question

Suppose you accumulated $500,000, perhaps from many years of saving. You put the money in a savings plan earning 6% compounded monthly. If you want the plan to last 40 years, how much can you withdraw at the beginning of each month?

Answer 1

A number of calculators and stand-alone apps are available for doing these problems. Here's the result of using my TI-83/84 financial app.

You can withdraw $2737.38 at the beginning of each month for 40 years.