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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  3. 👁 795
  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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