Sherry has $800,000 in her 403(b) account and wants to withdraw money over 25 years. She expects an annual interest rate of 3.5% What is Sherry's estimated monthly payout? Use the formula P=P⁢V⋅(r)/(1−(1+r)^−n)

For monthly withdrawals, use a monthly interest rate of 0.035 ÷ 12 and 25 × 12 = 300 payments. Substituting into the formula gives P = 800,000(0.035/12) ÷ [1 − (1 + 0.035/12)^−300] ≈ $4,004.99 per month. The matching choice is $4,004.99.

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