# Math

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%?

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1. 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?

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Reiny
2. This is the only information given 😬

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3. What type of interest problems were you studying that resulted in this question?
The way it is worded makes it a bogus question.

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Reiny
4. 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

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oobleck
5. In other words, it is a perpetuity like I had asked, but he never replied to my query.

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Reiny

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