How much money do you need in your account today?

label Business
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

If you are 65 years old, and want to draw $20,000 a year,for the next 30 years, and expect to live to be 100 years old, Your account pays a 6% interest rate. How much money do you need in your account today?

Nov 28th, 2015

Thank you for the opportunity to help you with your question!

First we get  the total amount   $20,000*  30=$600,000

now to get the principal  is p=A/1+rt

p=600000/1+0.06*30

p=214,258.71

This the money should be in the account now

Please let me know if you need any clarification. I'm always happy to answer your questions.
Nov 28th, 2015

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Nov 28th, 2015
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