​Sarah's wealth is now ​$0.9 million. She plans to withdraw 4​% of her current wealth​ (i.e. 36 comma 000​) each year to maintain her current lifestyle. If she can earn 2​% on her​ investment, for how many years can she live her current lifestyle before her money runs​

Respuesta :

Answer:

50 years

Explanation:

Sarah's wealth is 0.9 million or in easy terms $900,000.

If she invests that money at 2%, she could earn an amount of $18,000 every year while she is spending $36,000 each year. Which leads us to the final stage that she is decreasing her wealth by $18,000(36000-18000) every year.

Now this is simply calculated as,

$900000/18000 = 50.

After almost 50 years, she will have here money run out.

I hope this answer is acceptable to you. Good luck mate.