Asked by Kb

If John wants to retire with $10,000 per month, how much principal is necessary to generate this amount of monthly income if the interest rate is 15%?
Answered by Reiny
All kinds of information needed here.
For how long does he plan to retire?
Is the 15% rate and annual rate compounded monthly?
Is this a perpetuity?
Answered by Kb
This is the only information given 😬
Answered by Reiny
What type of interest problems were you studying that resulted in this question?
The way it is worded makes it a bogus question.
Answered by oobleck
the monthly interest rate is .15/12 = 0.0125 = 1/80
So, if the principal P is to remain unchanged after each month's payment, we need
P/80 = 10000
Answered by Reiny
In other words, it is a perpetuity like I had asked, but he never replied to my query.
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