Answer:
$904,510.28
Step-by-step explanation:
If we assume the withdrawals are at the beginning of the month, we can use the annuity-due formula.
P = A(1 +r/n)(1 -(1 +r/n)^(-nt))/(r/n)
where r is the APR, n is the number of times interest is compounded per year (12), A is the amount withdrawn, and t is the number of years.
Filling in your values, we have ...
P = $4000(1 +.034/12)(1 -(1 +.034/12)^(-12·30))/(.034/12)
P = $904,510.28
You need to have $904,510.28 in your account when you begin withdrawals.
Answer:
You need to have $904,510.28 in your account when you begin
