f) Your father just retired with 555,000 TL savings in his private retirement ac
ID: 1209760 • Letter: F
Question
f) Your father just retired with 555,000 TL savings in his private retirement account that pays 0.92% monthly interest. If he wants to withdraw a salary of 6,000TL per month, how long will it take for him to deplete the savings? As a graduate student with excellent knowledge engineering economics, you advice him to be more conservative and withdraw 5,100 TL per month (15% less than his original intention of 6,000 TL). How long will the retirement savings last then? Show your calculations both using analytical formulas and a relevant Excel function. Interpret your findings.
Explanation / Answer
Calculation is not at all required
1st case- the simple mathematical division will solve the query i.e 555000/6000 - 92.5 months takes to completely deplete thesavings. 555000/
2nd case- 555000/5100 - 108.8months it takes to completely deplete.
So if per moth if he withdraws less amount he can deplete in more years
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