Rounding Up to the Nearest Month, for How Long Will

question 227

Short Answer

Rounding up to the nearest month, for how long will a $100,000 fund sustain beginning-of-the-month withdrawals of $700 if the fund earns 6% compounded monthly?

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Definitions:

Par Value

A nominal value assigned to a security, such as a stock, which is stated in the corporate charter and often bears no relation to its market value.

Price-Earnings Ratio

A valuation metric for a company's current share price relative to its per-share earnings, indicating how much investors are willing to pay for each dollar of earnings.

Earnings Per Share

A financial metric that calculates the portion of a company's profit allocated to each outstanding share of common stock.

Market Price

The present cost at which a service or asset is available for purchase or sale.