Present Value =

Nominal Rate =

Inflation Rate =

Months =

Payment =

Calculates a retirement monthly payment when inflation is considered.

- Present Value: present value of all investments at the point of retirement.

- Nominal Rate: nominal interest rate expressed as a percentage. This is the interest rate the existing investments will continue to achieve throughout retirement.

- Inflation Rate: expected inflation rate during inflation.

- Months: how many months the retiree expects to draw on the present value investment amount.

- Payment: monthly payment amount.

A retiree has $100,000 in investments and is getting a market rate of 5%. The retiree would like to draw this amount to 0 over 60 months. Market expects a 3% inflation rate. What is the monthly payment?

- Present Value: $100,000.00

- Nominal Rate: 5.000%

- Inflation Rate: 3.000%

- Months: 60

The monthly payment is $1749.48.

Present Value

Nominal Rate

Inflation Rate

Months

Payment

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