Distribution Illustration Payouts
A client wants to know how much money to deposit into an account that has a fixed rate of return of 4.5%. They need a monthly income of $1,200 over 25 years.
Prompt 
Value 

Calculation Type 
Distributions 

Calculate 
Current Value 

Interest Rate 
4.5 

Number of Years 
25 

Type of Distribution 
Level Withdrawals 

Distributions per Year 
12 




Distributions Made at 
End of Period 

Amount of Each Distribution 
$1,200 

Final Account Value 
0 
The deposit (Calculated Current Account Value) will need to be $217,895.15.
What would the account balance need to be if they wanted $1,500 per month?
Change the Amount of Each Deposit prompt to $1,500.
The deposit would need to be $272,369.03.
What would the account balance need to be if they wanted to increase the payment by 3% per year?
Change the Type of Distributions to Annual Increase by Percent and enter 3% for the Annual Increase in Distribution prompt.
The deposit would need to be $371,450.01.