What am I doing wrong? PV -1,235,000 PMT -26,000 FV 2,000,000 n 18 solve for i? I’m getting 4.14%
PMT should be 26,000
26,000 must be made from portfolio after tax. Thus, 26,000 / (1-40%) = 43,333 should be distributed from the portfolio. PV -1,235,000 PMT 43,333 FV 2,000,000 N = 18 5.59% pre-tax instead of 7.38%?