Financial Formula

Posted by Schu on February 13, 2002 12:09 PM

Can someone help me with a formula, what I need is a formula that basically is a retirement distribution, where you enter initial amount, then set interest rate, number of periods, and amount withdrawn per period and the answer is how many years/months the money will last.

or make the answer how much can be withdrawn per month at a set number of years.

I can bearly handle the basic financial functions.

Thanx

Posted by Scott R on February 13, 2002 1:18 PM

The NPER function will handle your 1st request.
You can withdraw $3,483.25 per month for 120 months from a $300k nest egg, assuming it earns 7% per month. NPER(7%/12,-3483.25,300000)= 120 months

The PMT function will handle your 2nd request.
PMT(7%/12,10*12,300000)= -3483.25 per month

Posted by Schu on February 13, 2002 7:11 PM

Thanx!