since he want to have 100,000 "forever"
he will need a fund so that 6% of it = 100000
.06x = 100000
x = 1,666.666.67
so he has to accululate that much in 30 years, let the annual amount to save be P
P(1.06^30 - 1)/.06 = 1,666,666.67
P = 21,081.15 is needed each year
Suppose a man is
30
years old and would like to retire at age
60.
Furthermore, he would like to have a retirement fund from which he can draw an income of
$100,000
per
yearlong—forever!
How can he do it? Assume a constant APR of
6%.
1 answer
1 answer