9514 1404 393
Answer:
$2,104.33 at the beginning of the month, or
$2,111.35 at the end of the month
Step-by-step explanation:
The amount you can withdraw at the end of the month is given by the annuity formula ...
A = P(r/12)/(1 -(1 +r/12)^(-12t))
where principal P is earning annual rate r for t years
A = $400,000(0.04/12)/(1 -(1 +0.04/12)^(-12·25)) ≈ $2,111.35
If the withdrawal is at the beginning of the month, then the amount is less by a factor of (1+0.04/12) ≈ 1.003333. It will be $2,104.33.
