How much money will I need to have in investments (7% returns) if I want to?

Question

withdraw $300,000/year starting in 3 years and last me for 20 years?

Answer 1

Initial deposit = $2,820,394.74  @ 7% annual interest

with 1st  yearly $300,000 withdrawal 3 years later will

produce 0 balance in 20 years with last withdrawal.

Bal(n) = D0*(1+i)^n + T*(((1-(1+i)^(n-1))) / ( 1- (1+i))-1)

where

Bal(n): 0, balance at start of n periods after last T withdrawal

D0: initial deposit

T: 1st transaction at start of 3rd period, 300,000

i: interest rate per period  0.07

n: number of periods 20

solve for D0

Answer 2

http://bankrate.com/brm/calculators/savi...

Answer 3

$3,400,678.57 if you take out the 300,000 at the beginning of each year.

N = 20

I = .07

PMT = 300,000

FV = 0

Solving for PV gives you 3,400,678.57.