Withdrawing From a Retirement Account
Jason deposited $300,000 into a savings account which pays 5% interest compounded annually. He plans to withdraw money from the account once per year until it is all gone. Let's assume that Jason starts by withdrawing $25,000 on the first year of retirement and then each subsequent year, increases the withdrawal amount to coincide with inflation adjustments. Calculate the number of years the money will last assuming inflation increases at a constant 2% per year.