Present Values, Future values and monthly compounding of Chris's investments

On January 1st 1990, Chris invested $4,000,000 at a rate of 6% p.a. compounded monthly. Commencing with the first withdrawal on January 31st 1997, he has withdrawn $117, 572 at the end of each month to pay for his medical expenses. If this continues, on what date will the money run out?

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...t date will the money run out?

Find the present value (PV) at January 31st 1997

FV = PV (1 + r)n

= 4,000,000 (1 + 0.06/12)12

= 6,081,478.544

* PV refers to the initial investment of $4,000,000
* FV is the value of investment at 31st January 1997
* We ...