i need help with this math problem about interest

Mathematics
Tutor: None Selected Time limit: 1 Day

Suppose that you have decided that you will need $8000 per month on which to live in retirement. If the rate of interest is 8%, how much must you have in the bank when you retire so that you can live on interest only?

May 18th, 2015

$8000= 8%

what about 108%

(8000x108)/8= 108,000


May 18th, 2015

Hi there, was the interest monthly or annually?

May 18th, 2015

Thank you for answering my question.  So I would need $108,000 in the bank to live off of $8,000/month?

May 18th, 2015

The question never once said which.

May 18th, 2015
Correction: $108000 is what you will get after the interest, therefore, you will will be required to have the 100% which is the amount before the 8% interest. The 100% is $100,000 ( this is what you will need)
May 18th, 2015

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May 18th, 2015
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May 18th, 2015
May 24th, 2017
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