Answer:
The retirement fund will provide 87,148.56 dollars per year during 20 years
Explanation:
The plan is to achieve 1,000,000 in 30 years.
Then we will spend them equally during a period of 20 years
We want to knwo how much will the retirement account provide.
So, we need to calculate the cuota of an annuity of 20 years with a presenet vale of 1,000,000 dollars at 6% discount rate:
[tex]PV \div \frac{1-(1+r)^{-time} }{rate} = C\\[/tex]
PV $1,000,000.00
time 20 years
rate 6% = 6/100 = 0.06
[tex]1000000 \times \frac{1-(1+0.06)^{-20} }{0.06} = C\\[/tex]
C $ 87,184.56
The retirement fund will provide 87,148.56 dollars per year during 20 years
