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?
$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
Did you know? You can earn $20 for every friend you invite to Studypool!