Answer:20.91
Step-by-step explanation:
Given
Principal amount invested=[tex]\$ 1,000,000[/tex]
Rate of interest=8%
Annual Withdrawl=[tex]\$ 100,000[/tex]
compound interest is given by
A=[tex]\left (1+ \frac{r}{100}\right )^t[/tex]
Therefore reamining Amount after certain years
Net money will become zero after t year
[tex]1,000,000\left (1+ \frac{8}{100} \right )^t - 100,000\left ( \frac{\left ( 1.08\right )^{t}-1}{0.08}\right )[/tex]=0
[tex]0.8\left ( 1.08\right )^t=\left ( 1.08\right )^{t}-1[/tex]
t=20.91 years
