The Ingram’s Return Calc:

I got

Current Year Asset = 4200000

Current Year Spending = 200000

PV = 4200000 N=35 PMT = -200000 FV = -3000000 …I/Y 4.4%

The guideline answer came up with:

Next year’s spending = 200000 * 1.025 (Inflation) = 205000

PV = Investible assets - Current Year Spending (200000)

PV = 4000000 N=35 PMT = -205000 FV = -3000000 …I/Y 4.84%

Now my question is How am I wrong to assume that my current year’s spending -200000 would be drawn from the returns.

Please assist…